WORLD TRADE  
ORGANIZATION  G/SCM/N/186/CRI 
G/SCM/N/192/CRI 9 July 2009 
 
 
(09-3358) 
Committee on Subsidies and Countervailing Measures Original:   Spanish 
 
 
 
SUBSIDIES 
 
New and Full Notification Pursuant to Article XVI.1 of the GATT 1994 and
 
Article 25 of the Agreement on S ubsidies and Countervailing Measures  
 
Continuation of Extension under Article 27.4 of the Agreement on Subsidies and Countervailing  
Measures of the Transition Period for the Elimination of Export Subsidies Pursuant to  
the Procedures Contained in the General Council Decision in Document WT/L/691  
 
COSTA RICA 
   The following communication, dated 30 June 2009,  is being circulated at the request of the 
delegation of Costa Rica.  
_______________ 
 
  Pursuant to the procedures agreed upon in General Council Decision WT/L/691 in respect of the continuation of the extension under Article  27.4 of the Agreement on Subsidies and 
Countervailing Measures and, in particular, the provisi ons of paragraphs 1(c), 1(d), 2 and 3 of that 
document, the Government of Costa Rica hereby submits this updating notification concerning the 
programmes for which an extension has been gr anted (see documents G/SCM/61/Add.1 to 6 and 
G/SCM/62/Add.1 to 6).  G/SCM/N/186/CRI 
G/SCM/N/192/CRI Page 2 
 
 
  CONTENTS 
 
 
Page
 
 
NOTIFICATION ................................................................................................................... ............  2 
ANNEXES: Regulations implementing the Duty-Free Zone    Regime Law, Executive Decree No. 34739-COMEX-H of 29 August 2008 ......  12 
  
NOTIFICATION 
 
A. S
TANDSTILL REQUIREMENTS OF THE PROCEDURES FOR EXTENSIONS UNDER ARTICLE 27.4 
 The programmes contained in this notificati on, which have been granted extensions under 
Article 27.4 of the Agreement on Subsidies and C ountervailing Measures, have not been modified 
with respect to the requirements of document WT/L/691.  B. T
HE DUTY-FREE ZONE REGIME  
1. Description of the subsidy 
 The Duty-Free Zone Regime is the set of in centives and benefits offered by the State to 
enterprises making new investments in Costa Rica, subject to compliance with the requirements and 
obligations laid down in Law No . 7210 and amendments thereto, a nd its implementing Regulations.  
One of the qualification criteria is the requirement that at least 75 per cent of an enterprise's production be exported.  The Regulations establish the definition of "new investments in the country".  
The establishment location of a group  of enterprises operating as beneficiaries of this Regime is called 
a "duty-free zone", which is required to be a define d area, without a resident population, authorized by 
the Executive to operate in this capacity.  
2. Period of notification 
 This notification provides a description of th e Duty-Free Zone Regime corresponding to the 
calendar year 2008. 
 
3. Policy objective 
 The primary objective of the Law is to foster the socio economic development of Costa Rica 
by attracting foreign and domestic investment and promoting exports.  The Duty-Free Zone Regime is 
an important economic instrument for raising the st andard of living of the population of Costa Rica, 
particularly by creating sources of employment and supporting human development, with a special 
focus on less-developed areas of the country.  This t ype of regime is conducive to the establishment of 
enterprises engaged in a wide range of operations  and production processes which contribute to the 
generation of wealth and technological know-h ow and increase the country's international 
competitiveness.   G/SCM/N/186/CRI 
 G/SCM/N/192/CRI 
 Page 3 
 
 
  4. Background and authority 
• Duty-Free Zone Regime Law No. 7210 of 23 November 1990 (full text attached as an 
Annex to Costa Rica's notification in document G/SCM/N/71/CRI of 5 March 2002) and amendments thereto.
1 
 
• Regulations implementing the Duty-Fr ee Zone Regime Law - Executive Decree 
No. 29606-H-COMEX of 18 June 2001 (full text attached as an Annex to Costa Rica's notification in document G/SCM/N/71/CRI of 5 March 2002) and amendments thereto.
2 
 
• General Customs Law No. 7557 of 20 Octobe r 1995, Section I, Chapter V (Duty-Free 
Zone Regime3) and amendments thereto.4 
 
• Regulations implementing the General Cu stoms Law, Chapter X (Duty-Free Zone 
Regime), Executive Decree No. 25270-H of 28 June 19965 and amendments thereto.6 
                                                      
1 The amendments to Law No. 7210 of 23 November 1990 are contained in Law No. 7467 of 
20 December 1994, Law No. 7535 of 1 August 1995, Law No. 7638 of 30  October 1996, Law No. 4924 of 
17 September 1997 and Law No. 7830 of 22 September 1998 (full texts of this legislation are attached as 
Annexes to Costa Rica's notification in document G/SCM/N/71/CRI of 5 March 2002).  Law No. 8262 of 2 May 2002 amended Article 23 of Law No. 7210;  the full text of this Article is attached as an Annex to 
Costa Rica's notification in document G/SCM/N/95/CRI of 8 July 2003. 
2 The amendments to Executive Decree No. 29606-H-COMEX of 18 June 2001 are contained in:  
Executive Decree No. 29962 of 22 September 2001, Executive Decree No. 30124 of 25 January 2002, 
Executive Decree No. 30407 of 18 April 2002, and Exec utive Decree No. 30849 of 23 October 2002 (all of 
which are attached as Annexes to Costa Rica's notification in document G/SCM/N/95/CRI of 8 July 2003), Executive Decree No. 31715-H -COMEX-MEIC of 2 March 2004 (attach ed as an Annex to Costa Rica's 
notification in document G/SCM/N/114/CRI of 2 July 2004), Executive Decree No. 32232 of 
16 December 2004 (attached as an Annex to Cost a Rica's notification in doc ument G/SCM/N/123/CRI), 
Executive Decree No. 32804 of 30 Nove mber 2005 (attached as an Annex to Costa Rica's notification in 
document G/SCM/N/146/CRI), Executive Decree No. 33204 of 6 June 2006, Executive Decree No. 33283 of 
7 July 2006, Executive Decree No. 33291 of 20 June 2006, Executive Decree No. 33360 of 20 September 2006, Executive Decree No. 33483 of 2 November 2006 (attach ed as an Annex to Costa Rica's notification in 
document G/SCM/N/160/CRI), Executiv e Decree No. 34166 of 4 December 2007 (attached as an Annex to 
Costa Rica's notification in document G/SCM/N/177/CRI/Rev.1).  The Regulations implementing the Duty-Free 
Zone Regime Law - Executive Decree No. 34739-COMEX- H of 29 August 2008 repe aled Executive Decree 
No. 29606-H-COMEX.  The latter did not amend or alter the benefits of the Duty-Free Zone Regime (attached as an Annex to this notification). 
3 The parts referred to are attached as Anne xes to Costa Rica's notification in document 
G/SCM/N/71/CRI of 5 March 2002.  The full text is available for consultation in the archives of the Rules Division. 
4 The amendments to the General Customs Law No. 7557 of 20 October 1995 are contained in Law 
No. 7900 of 3 August 1999 (available for consultation in the archives of the Rules Division), Law No. 8373 of 4 August 2003 and Law No. 8419 of 28 June 2004 (the latter did not amend or alter the benefits of the regimes). 
5 The parts referred to are attached as Anne xes to Costa Rica's notification in document 
G/SCM/N/71/CRI of 5 March 2002.  The full text is available for consultation in the archives of the Rules Division. 
6 The amendments to the Regulations implementing the General Customs Law, Chapter X (Duty-Free 
Zone Regime), Executive Decree No. 25270-H of 28 June 1996 are contained in Executive Decree No. 25295 of 17 June 1996 (available for consultation in the archives of the Rules Division), Executive Decree No. 26285 of 
18 August 1997 (full text attached as an Annex to Costa Rica's notification in document G/SCM/N/71/CRI of 
5 March 2002), Executive Decree No. 26961 of 30 March 1998 (available for consultation in the archives of the Rules Division), Decree No. 27717 of 23 February 1999 (available for consultation in the archives of the Rules 
Division), Executive Decree No. 28242 of 30 September 1999 (available for consultation in the archives of the G/SCM/N/186/CRI 
G/SCM/N/192/CRI Page 4 
 
 
   
5. Form of the subsidy 
 The subsidy is essentially an exemption from pa yment of all taxes, consular fees and duties 
and is provided in the manner set out below. 
 
 The incentives granted by this Regime are:   (a) Exemption from all taxes and consular  fees on imports of raw materials, 
manufactured and semi-manufactured produc ts, components and parts, packing and 
packaging materials and other goods and me rchandise required for the operations of 
the enterprise; 
  (b) exemption from all taxes and consular fees on imports of machinery, equipment, 
accessories and spare parts, and on motor vehicles required for the operational, 
production, administrative and transport activities of the enterprise; 
  (c) exemption from all taxes and consular f ees on imports of fuel, oil and lubricants 
required for the operation of such enterprises; 
  (d) exemption from all taxes relating to the e xport or re-export of goods.  This exemption 
is granted for the re-export from the duty-free zones of production machinery and 
equipment which entered under the Law; 
  (e) exemption from payment of taxes on capita l and net assets and payment of land tax; 
 
 (f) exemption from sales and consumption taxes on purchases of goods and services; 
  (g) exemption from all taxes on remittances abroad;   (h) exemption from all taxes on profits and any other taxes for which the tax base is 
calculated in relation to gross or net earni ngs, dividends paid to shareholders, revenue 
or sales; 
  (i) exemption from any municipal tax or business tax;   (j) exemption from any taxes on imports or e xports of commercial or industrial samples; 
 
 (k) to enhance their business operations, en terprises benefiting under the Duty-Free Zone 
Regime are entitled to freely execute in foreign currency all kinds of deeds and contracts pertaining to their internationa l transactions or transactions with other 
enterprises established under the Duty-Free Zone Regime; 
 
 (l) enterprises based in relatively less-deve loped areas are entitled to a credit equivalent 
to 10 per cent of the total amount of wages and salaries paid the previous year;  this amount decreases by two percentage points per year and expires after five years; 
 
                                                                                                                                                                    
 
Rules Division), Executive Decree No. 28976 of 27 September 2000 (available for consultation in the archives 
of the Rules Division), Executive Decree No. 31667-H of 5 March 2004 (available for consultation in the archives of the Rules Division), Ex ecutive Decree No. 32098 of  23 September 2004 (available for consultation 
in the archives of the Rules Division), and Executive Decree No. 33915 of 30 January 2007.  G/SCM/N/186/CRI 
 G/SCM/N/192/CRI 
 Page 5 
 
 
   (m) export-processing enterprises which, ha ving operated for four years under the 
Duty-Free Zone Regime, reinvest in Costa Rica are entitled to an additional exemption from payment of income tax, at  a percentage corresponding to the amount 
of the reinvestment as a proportio n of the original investment. 
 
 The above exemptions remain subject to fulfilm ent of certain specific requirements laid down 
by laws and regulations, and internati onal agreements signed by Costa Rica. 
 
6. Beneficiaries and mechanism 
 The following types of enterprise qua lify for the Duty-Free Zone Regime: 
  (a) Export processing industries which manufacture, process or assemble goods for 
export or re-export; 
 
 (b) export trading enterprises with no production activity, which simply handle, 
repackage or redistribute non-traditional goo ds and products for export or re-export; 
  (c) service industries and enterprises which export services to natural or legal persons 
domiciled abroad, or which provide services to companies that are beneficiaries of the Duty-Free Zone Regime, in the latter case, provided that the services are directly 
related to the production processes of those companies; 
  (d) enterprises which manage parks wher e enterprises are to be based under the 
Duty-Free Zone Regime, provided that th e parks meet the minimum infrastructure 
and service-availability requirements laid down in the Regulations implementing the 
Law; 
  (e) enterprises or other entities engaged in scien tific research with a view to raising the 
technological level of the country's indus trial or agribusiness activity and foreign 
trade; 
 
 (f) enterprises operating shipyards or dry or floating docks for shipbuilding, repair or 
maintenance. 
  Export trading enterprises do not qualify for th e exemptions under subparagraphs (g) and (h) 
of section A.5 of this notification.  Thus, the great majority of enterprises operating under the 
Duty-Free Zone Regime are export processing indus tries rather than export trading enterprises. 
  Banking, financial and insurance entities ba sed in duty free zones do not qualify for the 
benefits of this Regime.  Neither do natural or  legal persons engaged in  providing professional 
services qualify for the Regime.  
 There are several stages in the granting of Regime status: 
  (a) Any natural or legal person wishing to jo in the Duty-Free Zone Regime is required to 
submit the relevant application to the Corporation
7 (these rights and obligations are 
currently vested in the Foreign Trade Pr omotion Agency (PROCOMER), pursuant to 
                                                      
7 "Corporation" means " Corporación de la Zona Franca de Exportaciones S.A. " (Export Duty-Free 
Zones Corporation, public limited company), pursuant to the General Customs Law, Law No. 7557 of 
20 October 1995. G/SCM/N/186/CRI 
G/SCM/N/192/CRI Page 6 
 
 
  Article 13(a) of Law No. 7638 of 30 October 1996), to be duly authenticated by a 
notary public, and to be accompanied by detailed information on the pollution caused 
by the process and its waste and the documents requested by the Board of Directors of the Corporation.  All applications must  comply with the relevant instructions 
issued by the Corporation; 
  (b) the Corporation examines the applica tion and information included, subject to 
provision of all the required details, and forwards an opinion to the Board of 
Directors, which is then required to decide on the matter by no later than at the 
ordinary meeting following receipt of the opini on, or at an extraordinary meeting if so 
agreed by four of its members; 
  (c) at its discretion, the Corporation may seek expert opinions from various State 
institutions to assist its examination of the enterprise's application; 
 
 (d) if the recommendation is approved, it is th en ratified by the Executive, by a resolution 
citing the details specified in the Regulations implementing the Law. 
 
7. Estimated amount of the subsidy 
 As this subsidy involves exemptions from a nu mber of different taxes and consular fees, 
which vary according to the level of compliance wi th the specified requirements, the comprehensive 
information required to estimate the amount of the subsidy is not available.  
8. Duration of the subsidy 
 Regime benefits apply as of the date on whic h Duty-Free Regime status is granted to the 
applicant enterprise.  With regard to duration, th e main incentives of the Duty-Free Zone Regime are 
subject to a specific expiry date.  Moreover, wher e there is non-compliance with the conditions laid 
down, the Regime may be revoked by the Ministry of Foreign Trade.   Of the incentives described in Section B.5 of th is notification, the following are subject to a 
specific expiry date: 
 
 - Exemption from taxes on capital and net assets and from payment of land tax for a 
period of ten years.
8 
  - Exemption from all taxes on profits and any other tax for which the tax base is 
determined according to gross or net ear nings, dividends paid  to shareholders, 
revenue or sales
9, according to the following distinctions: 
 
(a) For enterprises based in "relatively more developed areas", the exemption is 
100 per cent for a period of up to eight years, and 50 per cent for the following four years; 
 
(b) for enterprises based in  "relatively less-developed areas", the exemption is 
100 per cent for a period of up to 12 years, and 50 per cent for the following six years; 
 
                                                     
 
8 See section 5(e) of this notification. 
9 See section 5(h) of this notification.  G/SCM/N/186/CRI 
 G/SCM/N/192/CRI 
 Page 7 
 
 
  (c) for export processing enterprises which, after operating for four years under 
the Regime, reinvest in Costa Rica, there is a possibility of a further 
exemption of 75 per cent for up to four years, depending on the reinvestment amount. 
 
 - Exemption from all municipal tax and business tax for a period of ten years.
10 
  Regime benefits are likewise subject to the pr ovisions of Article 27.4 of the WTO Agreement 
on Subsidies and Countervailing Measures and the corresponding extensions granted by the WTO in 
documents G/SCM/39 and WT/L/691.  Every contract in which benefits are gr anted includes a clause 
that makes its duration subject to WTO rules.  Th erefore, the benefits as designed will have effect 
until 1 January 2015.  It should be noted that a ll the beneficiaries have already been notified. 
  In this connection, it is important to point out  that, as part of the National Development Plan, 
and included in the "Plan Escudo" proposed to deal with the crisis, the Govern ment of Costa Rica is 
drawing up a new strategy for attracting investment cons istent with WTO rules.  In this respect, taking 
into account paragraph 1(e) of General Council Decision WT/L/691, an inter-institutional commission 
(Ministry of Finance-PROCOMER-COMEX) has b een established to assess any measures that need 
to be taken to provide legal certainty, fulfil th e commitments undertaken and, at the same time, 
encourage higher levels of both domestic and fore ign investment.  In 2008, this commission, in 
consultation with other authorities, begun the pr ocess of drawing up a proposed amendment to the 
Duty-Free Zone Law that incorpor ates the following major changes, inter alia : 
 
• Eliminating the link between incentives and export. 
 
• Providing incentives for enterprises setting up in less-developed areas. 
 
• Giving tax credits for training. 
 
• Including criteria for strengthening links between free-zone enterprises and local 
industry (production chains). 
 
• Promoting the establishment of enterprises that will carry out research and 
development in Costa Rica and transfer knowledge. 
 
 As a result of the work carried out by th e inter institutional commission and taking into 
account the inputs received during the consultations with other bodies and organizations, a draft law 
on "Reform of the Duty-Free Zone Regime Law, No. 7210 of 23 November 1990 " was drafted and put 
before the Legislative Assembly by the Executive on 21 April 2009.  It is now being discussed and 
examined by the competent bodies of the Legislative Assembly. 
 
9. Trade effects of the subsidy
11 
 At the present time, there are 247 enterprises receiving the benefits of Duty-Free Zone status.  
Between them, those firms generate d 52 per cent of Costa Rica's total exports in 2008, as compared 
with 1991, when 81 enterprises covered by the Re gime accounted for only 9.3 per cent of total 
exports.  In 2008, roughly 1,201 different pr oducts were exported to 106 countries under the 
Duty-Free Zone Regime. 
                                                      
10 See section 5(i) and (m) of this notification. 
11 Information supplied by the Foreign Trade Promotion Agency of Costa Rica (PROCOMER). G/SCM/N/186/CRI 
G/SCM/N/192/CRI Page 8 
 
 
   
 It should be noted that in 2008, sales abroad by these enterprises amounted to US$4,982.4 million.  Currently, the Duty-Free Z one Regime is directly generating jobs for 
approximately 53,120 workers. 
 
 Along with this favourable socio economic impact, the installation of high-technology 
enterprises has been conducive to technology transfer and the development of a significant knowledge 
based industry in the domestic market, plus a specialized and highly competitive labour force. 
 
Costa Rica:  Total Exports and Duty Free Zone Exports 
in US$ millions 
 2006 2007 2008 
Duty-Free Zone  4,314.2  5,066.0  4,982.4 
Total exports  8,195.6  9,343.1  9,569.7 
Source :  PROCOMER 
 
C. THE INWARD PROCESSING REGIME  
1. Description of the subsidy 
 The Inward Processing Regime is the custom s regime allowing the entry of goods into 
national customs territory with suspension of all ty pes of taxes, subject to lodgement of a guarantee 
deposit.  The goods must be re-exported, within time- limits laid down in the re levant regulations, after 
undergoing processing, repair, reconstruction, installa tion, assembly, or after being incorporated in 
sub-assemblies, machinery, transport equipment in general or appliances with a higher degree of 
technological or functional complexity, or after being used for other similar purposes, under the 
conditions laid down in the regula tions or provisions stipulated for this purpose by the competent 
administrative authority.   Applications for a transition period for th e Inward Processing Regime refer solely to 
exemptions from import duties and indirect taxes,  meeting one of the conditions laid down in 
paragraphs (g), (h) or (i) of Annex I to the Agreement on Subsidies and Countervailing Measures. 
 
2. Period of notification 
 This notification provides a description of the Inward Processing Regime corresponding to 
the calendar year 2008. 
 
3. Policy objective 
 The Inward Processing Regime is designed to  promote production, employment, and foreign 
and domestic investment, which inevitably cont ributes towards increasing exports and domestic 
consumption.  The conjunction of all these aspect s helps to achieve national development objectives 
such as raising the standard of living of th e population, increasing in come levels, reducing 
unemployment and increasing the country's productivity and ability to compete internationally.   G/SCM/N/186/CRI 
 G/SCM/N/192/CRI 
 Page 9 
 
 
  4. Background and authority 
• General Customs Law, Law No. 7557 of 20 October 1995, Chapter VI (Processing 
Regimes)12 and amendments thereto.13 
 
• Regulations implementing the General Customs Law, Chapter XIII (Inward 
Processing Regime), Executive Decree No. 25270-H of 28 June 199614, and 
amendments thereto.15 
 
• Regulations on the Inward Processing and Drawback Regimes, Executive Decree 
No. 26285-H-COMEX of 19 August 1997 (the full text is attached as an Annex to Costa Rica's notification in document G/SCM/N/71/CRI of 5 March 2002), and amendments thereto.
16 
 
5. Form of the subsidy 
 The Inward Processing Regime a llows the entry of goods into national customs territory with 
suspension of all types of taxes, subject to l odgement of a guarantee deposit.  The goods must be 
re-exported, within the time-limits laid down in the relevant regulations, after undergoing processing, 
repair, reconstruction, installation, assembly, or  after being incorporated in sub-assemblies, 
machinery, transport equipment in general or a ppliances with a higher degree of technological or 
functional complexity, or after being used for ot her similar purposes, under the conditions laid down 
in the regulations or provisions stipulated for this  purpose by the competent administrative authority. 
 6. Beneficiaries and mechanism 
 To qualify for the Regime, the enterprise mu st choose one of the options available: 
  (a) 100 per cent re-export option:  enterpri ses choosing this option may not sell their 
products on the domestic market; 
 
 (b) re-export and domestic sale option:  und er this option enterprises may sell the goods 
on the domestic market or simply re-export them. 
 
                                                     
 
12 The parts referred to are attached as Anne xes to Costa Rica's notification in document 
G/SCM/N/71/CRI of 5 March 2002.  The full text is available for consultation in the archives of the Rules 
Division. 
13 Cf. footnote 4. 
14 The parts referred to are attached as Anne xes to Costa Rica's notification in document 
G/SCM/N/71/CRI of 5 March 2002.  The full text is available for consultation in the archives of the Rules 
Division. 
15 Cf. footnote 6. 
16 The amendments to the Regulations implementing the Inward Processing and Drawback Regimes, 
Executive Decree No. 26285-H-COMEX of 19 August 1997 , are contained in Execu tive Decree No . 27329 of 
26 August 1998 and Executive Decree No. 29055 of 31 October 2000 (the full texts are attached as Annexes to 
Costa Rica's notification in document G/SCM/N/71/CRI of 5 March 2002).  Also, Executive Decree 
No. 32982-H-COMEX of 10 March 2006 (the full text of this amendment is attached as an Annex to Costa Rica's notification in document G/SCM/ N/146/CRI) and Executive Decree No. 34165 of 
4 December 2007 (the full text of this reform is attached to Costa Rica's notification in document 
G/SCM/N/177/CRI/Rev.1).  These latest regulations replace the regulations in Executive Decree 
No. 26285-H-COMEX and henceforward Executive Decree No. 34165-H-COMEX will be the instrument 
regulating the Inward Processing Regime. G/SCM/N/186/CRI 
G/SCM/N/192/CRI Page 10 
 
 
   Enterprises operating under the "domestic sale" option are required to pay the full tax payable 
for the definitive importation of the goods.  Similarl y, at the time of inward clearance of machinery 
and equipment under the Regime, they are require d to pay the proportion of tax corresponding to the 
percentage of sales on the domestic market in re lation to the total sales of the enterprise. 
 
 The obligations for Regime bene ficiaries include the following:  to submit reports on all their 
operations to PROCOMER's Manage ment Unit;  to keep a log of operations carried out under the 
Regime;  prior to commencing operations, to ap ply to the Directorate-General of Customs for 
permission to operate as a Customs Service Auxiliary ;  to keep goods entering under the Regime in 
authorized premises or plants;  to keep a separat e stock control system and accounting records for 
operations carried out under the Regime;  to comp ly with customs legislation requirements, etc. 
 
7. Estimated amount of the subsidy 
 The information required to estimate the amount of the subsidy granted under this Regime is 
not available. 
 
8. Duration of the subsidy 
 Regime benefits apply as from the date of i ssue of the authorization to commence activities 
under the Inward Processing Regime.  Except in the event of the revocation of the Regime by the 
Ministry of Foreign Trade, or relinquishment by the enterprise covered by the Regime, the benefits 
granted by this Regime continue for an indefinite term. 
  However, Regime benefits are likewise subj ect to the provisions of Article 27.4 of the 
WTO Agreement on Subsidies and Countervailing Measures and the corresponding extensions 
granted by the WTO in documents G/SCM/39 and WT/L/691.  Every contract in which benefits are 
granted includes a clause that makes its duration subj ect to WTO rules.  Therefore, the benefits as 
designed will remain in effect until 1 January 2015.   As part of the changes planned in connection with the strategy to attract investment, the 
Government is also envisaging an amendment to  the Inward Processing Regime consistent with 
WTO principles.  This year, the aforementioned commission began analysing the possible alternatives 
in this area. 
 9. Trade effects of the subsidy
17 
 At present, there are 62 active enterprises be nefiting under the Inward Processing Regime.  In 
2008, this Regime provided employment for about  12,375 people.  In 2008, some 178 different 
products were exported under th is Regime to 53 countries. 
  The main destinations for exports under this  Regime include the United States of America, 
Nicaragua and Panama, which account for 48.7 per cent,  10.1 per cent, and 8.3 per cent, respectively. 
  It should be noted that a considerable proportio n of the firms operating under this Regime are 
located in areas with little urban development, and accordingly represent a very significant source of 
employment for the area. 
                                                     
 
17 See footnote 11.  G/SCM/N/186/CRI 
 G/SCM/N/192/CRI 
 Page 11 
 
 
   
Costa Rica:  Total Exports a nd Inward Processing Exports 
in US$ millions 
 2006 2007 2008 
Inward processing  430.4  460.5  360.9 
Total exports  8,195.6  9,343.1  9,569.7 
Source :  PROCOMER 
 G/SCM/N/186/CRI 
G/SCM/N/192/CRI Page 12 
 
 
  ANNEXES 
 
EXECUTIVE DECREE 
NO. 34739-COMEX-H- 
 
THE PRESIDENT OF THE REPUBLIC 
 
THE MINISTER OF FOREIGN TRADE a.i. AND THE 
MINISTER OF FINANCE 
 
 In exercise of the authority and powers conf erred on them by Article  140(3), (18) and (20) 
and Article 146 of the Political Constitution;  and pur suant to Articles 25(1), 27(1), and 28.2(b) of the 
General Public Administration Law, No. 6227 of  2 May 1978;  Article 2(g), (h) and (i) and 
Article 8(b) of the Law Establishing the Ministry of Foreign Trade and the Foreign Trade Promotion 
Agency of Costa Rica, No. 7638 of 30 October 1996;  the Duty-Free Zone Regime Law, No. 7210 of 
23 November 1990;  and Articles 5, 50, 175 and 176 of the General Customs Law, No. 7557 of 
20 October 1995;  and Articles 163 to 166 of th e Regulations implementing the General Customs 
Law;  and  
Whereas: 
 
I. The primary objective of the State is to foster the socio-economic development of Costa Rica 
by attracting foreign and domestic investment and promoting exports; 
 II. the Duty-Free Zone Regime is an appropriate instrument for raising the standard of living of 
Costa Rican citizens, particularly by genera ting sources of employment and opportunities for 
advancement, with emphasis on relatively less-developed areas in Costa Rica; 
 III. an essential condition for growth in Costa Rica 's foreign trade is the existence of factors 
conducive to the establishment of enterprises ca rrying out a wide range of operations which 
generate wealth and technol ogical expertise and increase the country's international 
competitiveness; 
 IV. it is believed that the impacts of such activities will result in significant socio-economic 
advances for the population in areas adjacent to duty-free zones; 
 
V. the Duty-Free Zone Regime law and amendmen ts thereto lay down the required conditions 
for the granting and operation of the Regi me and the rights and obligations of its 
beneficiaries; 
 VI. the Duty-Free Zone Regime attracts foreign i nvestment, benefiting living conditions thanks to 
the creation of new sources of employment that have a positive effect on the quality of life of 
Costa Rican citizens; 
 VII. the legal provisions governing the customs system  must be interpreted in the manner that best 
ensures the development of the Republic's fore ign trade, in keeping with the social and 
economic circumstances prevailing at the time of such interpretation and with other matters of 
public interest, in the light of the purposes of these provisions; 
 VIII. the aims of the legal provisions governi ng the customs system include facilitating and 
streamlining foreign trade transactions and en abling the proper collection of duties and the  G/SCM/N/186/CRI 
 G/SCM/N/192/CRI 
 Page 13 
 
 
  repression of illegal practices that undermine the administration and control of foreign trade 
by the Customs service; 
 IX. the present customs environment requires an adaptation of the regulations to ensure the 
continuity of customs transactions and enable th em to be carried out efficiently and always 
under transparent customs control, which is why it is imperative to undertake full-scale reform of the Regulations implementi ng the Duty-Free Zone Regime Law; 
 X. in view of the fact that the Regulations implementing the Duty-Free Zone Regime Law have 
constantly been the subject of amendments, re visions, additions and repeals, because of the 
full-scale revision to which the Law has been  subject, the repeal of Executive Decree 
No. 29606-H-COMEX of 18 June 2001, published in the official journal, La Gaceta , No. 121 
of 25 June 2001 and amendments thereto, and the issue of new implementing Regulations in 
order to have a better structured regulatory inst rument that is easy for users to consult, are 
justified. 
 Now therefore,  
DECREE 
Regulations implementing the Duty-Free Zone Regime Law 
CHAPTER I 
General provisions 
 
Article 1.- Scope 
  These Regulations lay down the rules and pro cedures relating to the granting of Duty-Free 
Zone Regime status and the operations Regime be neficiaries may carry out, in accordance with the 
Duty-Free Zone Regime Law, Law No. 7210 of  23 November 1990 and amendments thereto. 
 
Article 2.- Application and interpretation 
  In the application and interpretation of these Regulations, a balance shall be sought between 
the flexibility and efficiency of the operation of the Duty-Free Zone Regime on the one hand, and adequate monitoring and supervision of the correct use of the tax benefits granted, on the other. 
 
Article 3.- Inter institutional coordinati on and electronic information exchange 
 
 The Directorate-General of Customs, the Mini stry of Foreign Trade and the Foreign Trade 
Promotion Agency of Costa Rica, as well as other government bodies and entities involved in 
procedures relating to this Regime, shall establish th e coordination mechanisms needed to ensure the 
correct and uniform application of these Regulations.  
 Moreover, insofar as the technological circumst ances allow, these institutions shall transmit 
permits, authorizations, official proceedings and other operations relating to the Regime 
electronically, in accordance with th e procedures agreed between them. 
  Documents resulting from electronic transmi ssion among official subsidiary bodies shall 
constitute authentic documents and for all purposes sha ll be evidence of the existence of the original 
transmitted.  G/SCM/N/186/CRI 
G/SCM/N/192/CRI Page 14 
 
 
  Article 4.- Definitions 
 
 For the purposes of these Regulations, the following definitions apply:  
Resolution granting Regime status:   the resolution granting Duty-Free Zone Regime status to a 
natural or legal person;  Manager:   the enterprise managing a duty-free zone park; 
 
Customs Control Office:   with respect to Customs Service Auxiliaries, that Customs Office 
responsible for monitoring customs transactions i nvolving the Auxiliary.  Unless otherwise provided, 
this shall be understood to mean the Customs Office  with territorial competen ce in the locality where 
the customs transaction is effected;  
Extension of areas:   the increase in the area previously au thorized for the Regime beneficiary 
enterprise provided that the new areas adjoin the prev ious area.  Adjoining areas means those that are 
contiguous or mutually separated by an easement, pub lic highway, a railway or a private road, river, 
stream or water course, whether or not permanent.  In such cases, the location code attributed to the 
beneficiary enterprise shall be the same;  
Beneficiary:   the natural or legal person granted duty-free zone status; 
 Goods:   any object or article such as merchandise, ra w materials, inputs, products being processed, 
processed products, vehicles, equipment and machiner y, entering under the Duty-Free Zone Regime; 
 
Warehouse:   the physical installations of the beneficiar y intended solely for storing goods covered by 
the Regime and previously authorized by PROCOMER and the Directorate;  Credit:   the credit granted to natural or legal pers ons covered by the Duty-Free Zone Regime and 
located in relatively less-developed areas pursuant to Article 20(k) of Law No. 7210 and amendments 
thereto; 
 
Customs Auxiliary code:   the identification number given by the Directorate General of Customs 
when issuing the decision granting status as a Customs Service Auxiliary;  Location code:   the identification number given by the Directorate General of Customs for each 
geographical point in which the beneficiary enterp rise has facilities for the purpose of carrying out 
operations in connection with its activities under the Regime; 
 Marketing:   the activity which consists simply of  handling, repackaging and redistributing 
merchandise owned by the beneficiary of the Duty-Free Zone Regime;  
COMEX:   the Ministry of Foreign Trade; 
 Operating contract:   the contract to be signed by Duty-Fr ee Zone Regime beneficiaries with the 
Foreign Trade Promotion Agency of Costa Rica (PROCOMER), setting out their rights and obligations under the Regime on the basis of the resolution granting Regime status; 
 
Duty-Free Zone Customs Declaration:   the document registered by a notary recording all entry and 
exit movements of materials, merchandise, machiner y and equipment into and out of duty-free zones; 
  G/SCM/N/186/CRI 
 G/SCM/N/192/CRI 
 Page 15 
 
 
  Cancellation of approval of areas:   the reduction in the area previously authorized for the Regime 
beneficiary enterprise, either because one of its f acilities has been closed altogether or because the 
area of one or more facilities has been reduced;  
Scrap:   the merchandise left over from the production process; 
 Directorate:   the Directorate-General of Customs; 
 Assembly operation:   the act of joining components (par ts, sub-assemblies a nd assemblies) which 
when combined result in a product with charact eristics different from its component parts; 
 General Management Unit:   the General Management Unit of the Foreign Trade Promotion Agency 
of Costa Rica.  
IMAS:   the Joint Social Assistance Institute; 
 Definitive importation:   the entry into Costa Rican customs territory of merchandise that complies 
with the formalities, and the legal, regulatory a nd administrative requirements for use and definitive 
consumption in Costa Rican customs territory;  
Increase in area:   the increase in the area previously author ized for the Regime beneficiary enterprise 
provided that the new areas do not adjoin the previous  area.  In such cases, the Directorate shall give 
the new areas a new location code;  Exchange of goods:   the agreement between beneficiari es under the Regime to exchange goods 
between them to be used ex clusively for their operations; 
 Inward customs clearance of merchandise:   the entry of merchandise into the Duty-Free Zone 
Regime by the beneficiary enterprise.  Inward customs clearance does not signify import;  Board of Directors:   the Board of Directors of the Foreign Trade Promotion Agency of Costa Rica; 
 
General Customs Law:   the General Customs Law, Law No. 7557 of 20 October 1995 and 
amendments thereto;  Law No. 7210 and amendments thereto:   the Duty-Free Zone Regime Law, Law No. 7210 of 
23 November 1990 and amendments thereto; 
 Materials and merchandise:   this refers to materials and merchandise which would qualify for 
inclusion in the Duty-Free Zone Regime, and fo r the purposes of these Regulations, the following: 
  (a) Raw materials, initial forms, including  mixtures (prepared or semi-processed, for 
example), associated materials (mechan ical, electrical, measuring, monitoring, 
verification or testing apparatus, for example); 
  (b) merchandise to be used for administ rative activities (desks, computers, office 
supplies, for example) specifically for the operational or production area of the 
beneficiary; 
  (c) goods needed for food preparation, furnitu re and utensils required for serving food, 
appliances, furniture and fittings for traini ng and for medical care or rehabilitation, G/SCM/N/186/CRI 
G/SCM/N/192/CRI Page 16 
 
 
  solely for use by employees directly asso ciated with the operational, production, 
administration and transport processes of the enterprises; 
  (d) manufactured goods or processed products  required, and commercial, industrial or 
scientific samples.  In all cases, the merchandise in question must be directly related 
to the activity covered by the incentives. 
 Machinery and equipment:   the goods used for the processing or transformation of other products or 
services, or intended for operations , administration and production; 
 
Wastage:   the proportion by which inputs are diminish ed with respect to the initial quantity after 
undergoing or being used in a production process;  Operations:   activities conducted by enterprises covered by the Duty-Free Zone Regime, including 
activities generating employment, the construction of infrastructure and industrial facilities, and other 
activities related to the production process;  Production operations:   production process and/or service supply activities covered by the Regime; 
 Regime administration entity:   the Foreign Trade Promotion Agency of Costa Rica; 
 
Duty-free zone park:   any park managed by an enterprise with  Duty-Free Zone Regime status in the 
category of manager of a duty-free park in accordance with Article 17(ch) of Law No. 7210 and amendments thereto;  
Principal plant:   the physical installations authorized by  the Foreign Trade Promotion Agency of 
Costa Rica and the Directorate-General of Custom s for the principal operations of the Regime 
beneficiary, with the exception of physical insta llations of enterprises classified as managers of 
duty-free zone parks;  Satellite plants:   the operational physical installations situat ed within or outside the park belonging to 
beneficiaries whose principal plant is within the park; 
 Secondary plant:   the operational physical installations situ ated within or outside the park belonging 
to beneficiaries whose principal plant is outside the park;  
PROCOMER:   Promotora del Comercio Exterior de Costa Rica  (Foreign Trade Promotion Agency 
of Costa Rica);  Regime:   the Duty-Free Zone Regime, which is the set of incentives and benefits offered by the State 
to natural or legal persons that comply with th e requirements and obligations laid down in Law 
No. 7210 and amendments thereto, these Re gulations and other applicable rules; 
 
By-products:   the products obtained as a secondary outcome of the main production process; 
 Transfer of goods:   transfer of the control over or ownership of rights in goods entering under this 
Regime, subject to agreement between the beneficiaries of the Regime; 
 
Location:   geographical point or points where the bene ficiary enterprise has facilities for the purpose 
of carrying out operations in connection with activities under the Regime;   G/SCM/N/186/CRI 
 G/SCM/N/192/CRI 
 Page 17 
 
 
  Duty-free zone:   a delimited area without a resident po pulation and authorized as a base for the 
establishment of enterprises operating under the Duty-Free Zone Regime.  
CHAPTER II 
Investment requirements 
 
Article 5.- Criteria for new investment 
 
 Duty-Free Zone Regime status shall be grante d solely to enterprises making new investments 
in Costa Rica in accordance w ith the following criteria: 
  (a) Initial new investment in fixed assets of at least one hundred and fifty thousand 
United States dollars (US$150,000) or the equi valent in local currency, for enterprises 
based within a duty-free zone park; 
 
 (b) initial new investment in fixed assets of at least two million United States dollars 
(US$2,000,000) or the equiva lent in local currency, for enterprises based outside a 
duty-free zone park. 
  For the purposes of the preceding paragraph, where the assets have been purchased in local 
currency the amount of the initial new investment shall be determined according to the selling 
exchange rate for the dollar on the day of the purchase of the asset in question. 
 
Article 6.- New investments 
  To qualify as new investments, investments in fixed assets shall meet the following 
requirements:   (a) The assets are owned by the Duty-Free Zone Regime applicant, and have been 
acquired by the applicant as from the date of the lodgement of the application for Duty-Free Zone Regime status; 
 
 (b) in the case of movable fixed assets, they  are new or used assets in provenance from 
outside the country, or new assets acquired in Costa Rica; 
  (c) in the case of park management enterp rises, the fixed assets subject to a guarantee 
trust whose trustor and/or beneficiary is the Regime beneficiary enterprise, provided 
that they are duly registered in the accountin g records of the beneficiary enterprise.  
The foregoing shall be without prejudice to the preference given to the State by law for the recovery of exempted taxes; 
  (d) improvements to property owned or leased by the enterprise. 
 
Article 7.- Time-limit for carrying out initial investment 
 
 Initial investment means investment carried out within the time-frame established in the 
relevant resolution granting Regime status.  This pe riod shall be set in accordance with the nature and 
characteristics of each project and may never exceed tw o years as from the date of notification to the 
beneficiary of the resolution granting Regime status.   The minimum initial new investment in fixed assets requirement shall be  independent of the 
total investment obligation undertaken by the be neficiary enterprise, as set down in the resolution G/SCM/N/186/CRI 
G/SCM/N/192/CRI Page 18 
 
 
  granting Regime status, although the minimum initia l new investment amount shall be regarded as 
part of the total investment amount  to which the enterprise commits. 
  Assets acquired prior to the filing date of the application to join the Duty-Free Zone Regime 
and used assets acquired in the country shall be cons idered part of the total investment amount and not 
part of the initial new investment undertaken by the enterprise.  
Article 8.- Fixed assets 
  Fixed assets mean immovable property, and movabl e property subject to depreciation.  In the 
case of park management enterprises, both the im movable property in trust to be used for 
administration and development purposes and that used  in operating the business, for which the date 
and cost of acquisition are duly recorded in the accounting records of the Duty-Free Zone Regime 
applicant.  For the purposes of determining the initial new investment amount, fixed assets shall be 
valued at historical cost (acquisition cost), without prejudice to the application for accounting 
purposes of the standards and rul es governing taxation procedures. 
  For the assessment of the amounts of the investments, to be carried out on the basis of the annual report on activities, PROCOMER shall use the exch ange rate as of the da te Regime status was 
granted, according to the resolution on its granting.  If the investment amount has been increased, the 
exchange rate to be applied for the increased valu e shall be that on the date of notification of the 
resolution authorizing the modification.  
Article 9.- Initial new investment for consortium enterprises 
  Small export processing enterprises, which are understood as enterprises employing no more 
than 20 staff, may form consortiums, pursuant to th e third paragraph of Article 1 of Law No. 7210 and 
amendments thereto, to meet the required amount for initial new investment in fixed assets.  In other respects these cases shall be subject to the rules set down in this Chapter. 
  The possibility referred to in this Article relates solely to enterprises intending to set up within 
the same duty-free zone park. 
 
CHAPTER III 
Provisions on admission to the Regime and granting of 
status as a Customs Service Auxiliary 
 
Section I 
Application for admission to the Regime and 
status as a Customs Service Auxiliary 
 
Article 10.- Application requirements 
 
 Any enterprise interested in operating under the Regime and obtaining the status of Customs 
Service Auxiliary shall make an applica tion to PROCOMER on the corresponding form. 
  This form shall contain the following information and be accompanied by the documentation 
listed below: 
  G/SCM/N/186/CRI 
 G/SCM/N/192/CRI 
 Page 19 
 
 
  I. Information common to the application fo r admission to the Regime and status as a 
Customs Service Auxiliary: 
 
 (a) Name of applicant; 
 
 (b) identity document;   (c) address or means of notification;  
 (d) exact address of the installations; 
  (e) ownership of the property:  indicate whether the property is owned by the enterprise 
or leased; 
 
 (f) telephone number, fax and e-mail address; 
  (g) status of the enterprise:  indicate whet her the enterprise is already operating or is a 
project; 
  (h) name of legal representative, identity document and number; 
 
 (i) description of the activity;   (j) sworn statement indicating that:  
(i) the enterprise is not engaged in th e manufacture or marketing of weapons of 
any kind (whether permitted or prohibite d) or of components, assemblies or 
sub-assemblies used exclusively in the defence industry; 
 
(ii) the enterprise is listed in the Mini stry of Finance's Register of Taxpayers; 
 
(iii) the enterprise is up to date with th e payment of all its contributions to the 
Costa Rican Social Security Fund; 
 
(iv) the enterprise, its shareholders, directors, employees or representatives have 
not been convicted by final administra tive resolution in connection with the 
enterprise's activities for administra tive, customs, tax or customs tax 
offences; 
 
(v) the enterprise, its shareholders, directors, employees or representatives have 
not been convicted by final Court judgement in connection with the enterprise's activities for customs or tax offences; 
 
(vi) the enterprise and the investment project to be implem ented do not benefit 
from any incentives regime; 
 
(vii) the enterprise and investment project  to be implemented have not previously 
benefited from incentives under the Regime , even if this was under the name 
of a different natural or legal person; 
 
(viii) the enterprise, its shareholders or any potential beneficiary is not entitled to 
discount the taxes exempted in Costa Rica in its country of origin; G/SCM/N/186/CRI 
G/SCM/N/192/CRI Page 20 
 
 
   
(ix) the enterprise is not a banking, fi nancial or insurance entity and does not 
provide professional services; 
 
(x) the enterprise undertakes to acquire  suitable software for the electronic 
transmission of data to the National Customs Service's computer system; 
 
(xi) the enterprise undertakes to comply w ith the legal, regulatory and procedural 
provisions on the control and safety of the merchandise applicable to its 
installations; 
  (k) the signature on the form shall be auth enticated by an attorney-at-law or notary 
public; 
 
 (l) production activities outside the area au thorized as a duty-free zone:  where the 
normal activities of the enterprise require that production activities be carried out outside the area authorized as a duty-free zone, the enterprise shall provide details of such activities and the corresponding justification.  Likewise, it shall indicate whether temporary inward customs clearance of machinery, equipment, materials and goods into Costa Rican customs territory will be  required, in which case it shall provide 
details of such goods. 
 
II. Information required for admission to the Regime: 
 
 (a) Detailed information on the pollution and waste that will be produced by the 
production process, or copy of the form submitted to the relevant entity of the 
Ministry of the Environment and Energy re garding the environmental impact study, 
where applicable, pursuant to the relevant Laws and regulations; 
  (b) the amount of initial new investment in fixed assets, together with the total 
investment planned and number of employment positions; 
 
 (c) estimate of the domestic value added the enterprise undertakes to maintain.  This 
calculation shall be based on the formula laid down for this purpose in these 
Regulations. 
 III. Information required for the granting of  status as a Customs Service Auxiliary: 
 
 (a) Name and identity of the staff members who will deal directly with the National 
Customs Service; 
  (b) sworn statement showing that the regi stered owner has granted the appropriate 
authorization to operate on the premises in  which the activity under the Regime will 
take place; 
  (c) sworn statement, registered with a notary , attesting to the existence of a place suitable 
for the safekeeping of the documents whic h, in accordance with its status as a 
Customs Service Auxiliary, it is required to keep;  and the address of this place. 
 
IV. Documentation: 
 
 (a) Certificate of legal personality issued  not more than three months previously;  G/SCM/N/186/CRI 
 G/SCM/N/192/CRI 
 Page 21 
 
 
   
 (b) special power of attorney if the applica tion is made by a person other than the legal 
representative, with express mention of the f act that the power of attorney authorizes 
him to submit the application for admission to the Regime and acquisition of the 
status of Customs Service Auxiliary; 
  (c) copy, certified by a public notary, of the front and back of the identity documents of 
the legal representative and of the staff me mber who will deal directly with the 
National Customs Service; 
 
 (d) copy, certified by a public notary, of the enterprise's legal certificate;   (e) if the applicant is a natural pers on, the following shall also be included: 
 
(i) copy, certified by a public notary, of  the front and back of the applicant's 
identity document; 
 
(ii) document issued by the Costa Rican Social Security Fund certifying that the 
applicant does not work for the Costa Rican State, its autonomous or semi-autonomous institutions or Stat e-owned enterprises, pursuant to 
Article 29 bis of the General Customs Law; 
 
(iii) certificate from the Offenders Register (to be procured directly from the 
entity responsible for labour matters). 
 
Section II 
Granting of the Regime 
 
Article 11.- Checking of the application by PROCOMER 
 
 In addition to the information and documents  required by the preceding Article, PROCOMER 
shall check the following: 
  (a) That the applicant enterprise and the activities planned by the enterprise under the 
Regime fall within one of the categories set down in Article 17 of Law No. 7210 and 
amendments thereto; 
 
 (b) that the project complies with the mi nimum initial investment requirement set down 
in Law No. 7210 and amendments thereto,  and in Chapter II of these Regulations; 
  (c) that neither the applicant enterprise nor the project have previously benefited from the 
Regime incentives, or if they have so be nefited, that sufficient evidence is presented 
that the application relates to a new project, or of the nature and scale of the 
additional investment involved, in accordance with Article 20 bis of Law No. 7210 
and amendments thereto; 
  (d) the enterprise's percentage of domestic value added. 
 
Article 12.- Calculation of domestic value added 
 
 For the calculation of domestic value added (DVA) or domestic content applicable for the 
granting of Regime status, PROCOMER shall interpret the concept of DVA as follows:  FOB Exports G/SCM/N/186/CRI 
G/SCM/N/192/CRI Page 22 
 
 
  (X FOB) less Inward Customs Clearance CIF (M CIF), plus Change in Inventory (Inv), less 
remittances (R), less Fees Paid Abroad (FPA). 
  DVA = X FOB - M CIF +/- Inv - R - FPA, where: 
 
 X FOB:  FOB exports of the finished product  M CIF:  CIF value of inward cleared raw materials  R:  remittances, meaning dividends paid abroad  FPA:  fees paid abroad 
 Inv: change or variation in inventories ove r the period.  This refers to inventories 
of the final product, product being processed and raw materials. 
  Where:  FOB exports are exports of finished products;  in the case of  service, management 
and trading companies, they shall be understood as total service or trading sales;  inward customs 
clearance corresponds to the CIF value of the raw mate rials (M CIF);  change in inventory (Inv) shall 
be the result of the final inventory minus the initia l inventory of the finished product, product being 
processed and raw materials, as a monetary amount;  remittances (R) refers to the amount of funds 
sent abroad in foreign cu rrency or capital repatriation;  and fees paid abroad (FPA) are fees paid 
abroad by the enterprise other than by remittances.  
 Enterprises with no inventories sha ll record these at zero (0) value. 
 
Article 13.- Formalities for admission to the Regime 
 
 Within two working days of submission of the application, PROCOMER shall notify the 
applicant of any missing documentation, or of any requirement that has not been met relating to the 
application for admission to the Regime, granting a period of ten working days for compliance with 
the requirements set out in this notification.   Within not more than one working day of receipt  of all the required information, the technical 
unit of PROCOMER shall forward an opinion to the Board of Directors or to the entity to which the 
Board of Directors has delegated this role;  the opi nion shall include an assessment of the aspects set 
out in these Regulations and a recommendation, with supporting arguments, on whether or not 
Regime status should be granted to the applicant en terprise.  The Board of Directors, the entity to 
which this role has been delegated, or PROC OMER may seek the opinion of other government 
entities or bodies where it considers that this will assi st with the assessment of the project.  Following 
the analysis of the application, within three worki ng days of receipt of the complete application, the 
Board of Directors or the relevant entity of PR OCOMER shall submit the final recommendation to 
COMEX so that the Executive can take a decision on the matter within not more than four working 
days from receipt of PROCOMER's recommendation.  
Article 14.- Resolution granting Regime status 
 
 If the Executive decides to gran t Regime status to the appli cant enterprise, the corresponding 
Resolution shall be issued and shall contain at least the following details: 
  (a) Register entry details and representatio n information on the beneficiary enterprise; 
 
 (b) specification of the classification category of the enterprise within the categories set 
down in Article 17 of Law No. 7210 and amendments thereto; 
  G/SCM/N/186/CRI 
 G/SCM/N/192/CRI 
 Page 23 
 
 
   (c) description of the principal characteris tics of the project and the activities to be 
carried out by the enterprise under the Regime; 
  (d) legally required minimum amount of in itial new investment in fixed assets, and the 
time-limit for attaining that figure; 
  (e) criteria which the beneficiary enterp rise undertakes to meet, in terms of total 
investment amount and the number of em ployment positions, and the time-limits 
within which the enterprise undert akes to meet these commitments; 
 
 (f) express reference to the obligations of th e beneficiary enterprise to meet all the 
requirements under Law No. 7210, its impl ementing Regulations  and amendments 
thereto, and its obligations as a Customs Service Auxiliary; 
 
 (g) express reference to the obligation of the enterprise to accept implementation of 
mechanisms allowing satisfactory monitori ng and supervision of its operations under 
the Regime, as set down by PROCOMER and the Ministry of Finance; 
  (h) express reference to the ob ligation of the enterprise to co mply with all environmental 
protection requirements laid down in Costa Ri can legislation and international law for 
the performance of economic activities in a sust ainable manner, to be verified by the 
competent authorities; 
  (i) indication of the production activities that may be conducted outside the area 
approved as a duty-free zone, together with  the list of machinery, equipment, 
materials and merchandise that may be inward cleared. 
 
Article 15.- Rejection of the application for Regime status 
 
 If it is decided not to grant Regime status to the applicant enterprise, the corresponding 
resolution shall be issued and notified to the applicant by PROCOMER. 
 
Article 16.- Contesting rejection of the application 
 
 Resolutions denying Regime status shall be subject to appeal for review according to the 
provisions of the Code of Administrative Litigation Procedures. 
 
Article 17.- Content of the administrative file 
 
 As from the submission of the initial application,  and after the issue of the final resolution, 
PROCOMER shall keep the files relating to Regime  applications, correctly numbered in sequence. 
 
Section III 
Approval of status as a Customs Service Auxiliary 
 
Article 18.- Formalities for authorization to  operate as a Customs Service Auxiliary 
  When it recommends admission to the Regime, PROCOMER shall send the Directorate a 
certified copy of the file containing the informati on and documentation submitted by the enterprise so 
that the Directorate may satisfy itself that the file conforms with the provisions of Article 10 of these Regulations relating to the application for the gran ting of status as a Customs Service Auxiliary.  If 
the Directorate determines that the informati on provided does not meet the requirements of the G/SCM/N/186/CRI 
G/SCM/N/192/CRI Page 24 
 
 
  aforementioned Article, within five working days of receipt of the file, it shall inform PROCOMER, 
which shall give the enterprise a formal warning,  in relation to this application, allowing it 
ten working days within which to comply.  
 Once the file is complete, the Directorate sh all process the application for registration as a 
Customs Service Auxiliary, in accordance with th e criteria indicated in the following Article. 
 
Article 19.- Resolution granting status as a Customs Service Auxiliary 
  The Directorate shall issue the resolution gr anting status as a Customs Service Auxiliary, 
taking into account the following factors:   (a) Enterprises located inside a park:   The Directorate shall issue any resolution 
granting status as a Customs Service Auxilia ry within not more than two working 
days of being notified by PROCOMER of granting of the status, duly certified by the 
latter.  In such cases, the Directorate w ill not carry out a prior inspection of the 
installations.  Nevertheless, once the en terprise is operating under the Regime, the 
Customs authority, using its statutory powers , may carry out the visits and inspections 
it considers pertinent and, if it finds any failu re to comply with the requirements to be 
met by the installations, it shall take the a ppropriate steps to establish the penalties for 
which the legislation provides. 
  (b) Enterprises located outside a park:   In the case of enterprises located outside a 
park, once the file is complete, the Directorate's Registration Department shall request the Customs Control Office to inspect the in stallations, in accordance with Article 80 
of the Regulations implementing the Gene ral Customs Law.  The Customs Control 
Office shall have at most ten working days from the notification of the application to send the corresponding inspection report to the Registration Department.  Once the report has been received and found to be in order, the Directorate shall grant the enterprise the status of Customs Service Aux iliary within at most 15 working days of 
receipt of the file forwarded by PROCOMER.  In any case, the Directorate must be in 
possession of the notification approving the status in order to issue the said 
resolution. 
 
If the plant is not ready for inspection b ecause it is under construction or machinery 
and/or equipment has still to be installed,  PROCOMER shall also forward the file to 
the Directorate, in which case the interest ed party shall inform the Registration 
Department in writing of the time from which the inspection of the installations can be arranged.  In such cases, subject to a request by the interested party, the 
Directorate shall grant the Customs Servi ce Auxiliary code so that the applicant 
enterprise may clear the goods needed for the construction of the plant and other infrastructure. 
 
 (c) Park management enterprises:   After the file has been received, the Registration 
Department shall request the Customs Contro l Office to inspect the installations.  The 
Customs Control Office shall have at most  ten working days from the notification of 
the application to send the corresponding inspection report to the Registration 
Department.  Once the report has been received and found to be in order, the 
Directorate shall grant the enterprise the st atus of Customs Service Auxiliary within 
at most 15 working days of receipt of the file forwarded by PROCOMER.  In any case, the Directorate must be in possession of  the resolution approving the status in 
order to issue the said resolution.  G/SCM/N/186/CRI 
 G/SCM/N/192/CRI 
 Page 25 
 
 
   
If the plant is not ready for inspection because it is under construction, PROCOMER shall also forward the file to the Director ate, in which case the interested party shall 
inform the Registration Department in writing of the time from which the inspection 
of the installations can be arranged.  In  such cases, subject to a request by the 
interested party, the Directorate shall gr ant the Customs Service Auxiliary code so 
that the applicant enterprise may clear th e goods needed for the construction of the 
works and other infrastructure. 
 
 This procedure shall be followed when th e area of a park is extended or reduced. 
  When the resolution approving the status of  Customs Service Auxiliary is issued, the 
Directorate shall, at the same time, furnish the computer code required for electronic data transmission. 
 
 The administrative decisions relating to the inspection of the installations and the final 
resolution on the application for the granting of th e status as a Customs Service Auxiliary shall be 
communicated to PROCOMER.  
Article 20.- Application and requirements for occ upying installations previously authorized for 
another enterprise under the Regime  
 Services enterprises may be located in the inst allations of another en terprise approved under 
the Regime, whether a services or processing enterpri se, in which case this shall be noted in the 
application for admission to the Regime so that the Customs Control Office may in all cases inspect 
the installations. 
  For this purpose, both enterprises shall give effect  to the controls that allow their operations to 
be identified individually and shall define the area  of operations where each enterprise is to be 
located, without prejudice to compliance and the obl igations on controls, inventory and identification 
of assets imposed by the Law and these Regulations on the beneficiaries. 
 
Section IV 
Other provisions 
 
Article 21.- Validity of the benefits 
 
 The benefits granted to enterprises by Law No . 7210 and amendments thereto take effect as of 
the date on which the resolution granting Regime stat us is forwarded to the applicant, but without 
prejudice to the second paragraph of Article 20(g)  of Law No. 7210 and amendments thereto.  
Notwithstanding the above, performance of the ac tivities under the Regime and actual enjoyment of 
the benefits hereunder may not commence until such time as the beneficiary enterprise has signed an 
operating contract with PROCOMER, in the format established for this purpose. 
  In order to commence production operations unde r the Regime, the enterprise shall have been 
authorized by the Directorate to act as a Custom s service Auxiliary, in acco rdance with the General 
Customs Law and its im plementing Regulations. 
 
 The resolution granting Regime status, a ll amendments thereto, and the resolution 
relinquishing the Regime shall be published in full in the official journal, La Gaceta , at the expense of 
the applicant enterprise.  G/SCM/N/186/CRI 
G/SCM/N/192/CRI Page 26 
 
 
  Article 22.- Consortiums of processing enterprises 
 
 In the case of small enterprises intending to fo rm consortiums to carry out export processing 
activities, the enterprises forming the consortium shal l constitute a single legal person or contractually 
designate one of the enterprises as the applicant. 
  In the latter case, the application shall be accomp anied by a copy of the relevant consortium 
deed, clearly setting out the obligations and respon sibilities of each of the member enterprises.  
Furthermore, the enterprises forming the consortiu m shall without exception be based in the same 
duty-free zone park. 
  In cases where one enterprise is designated as th e applicant, all the consortium enterprises 
shall be regarded as Regime beneficiaries for th e purposes of compliance with the obligations and 
application of the penalties referred to in Law No. 7210 and amendments thereto, and in other 
relevant laws and regulations. 
 
Article 23.- Electronic data transmission 
 
 PROCOMER and the Directorate may author ize certain procedures falling within their 
competence to be carried out electronically.  To this end, the beneficiaries shall meet all the 
requirements for authorization and the obligations imposed by the legal customs regime as a Customs 
Service Auxiliary, particularly those concerning the electronic transmission of customs declarations, supporting information and the correct use of security  codes, access keys or digital signatures.  For 
this purpose, the beneficiary shall meet the requirements laid down by PROCOMER and the Directorate for using the computer systems. 
 
 In such cases, the code or the confidential ac cess or security key assigned to an enterprise 
shall be equivalent, for al l legal purposes, to the signature of the legal representative or authorized 
person.   In such cases, documents on magnetic, digital or  electronic media shall have the same legal 
effects as those in hard copy. 
 
CHAPTER IV 
Park management enterprises 
 
Article 24.- Application for admission as a park management enterprise 
 
 In the case of enterprises applying for Duty-Free Zone Regime status in order to develop and 
manage a duty-free zone park, the provisions of Ch apter III of these Regulations apply.  However, 
PROCOMER shall also request information in conf irmation of sufficient financial capacity for the 
development of the project and the presence of ad equate infrastructure facilities, availability of 
services and adequate supervisory mechanisms, having regard to the obligations of park management 
enterprises, pursuant to Law No. 7210 and amendments  thereto.  In addition, the enterprise shall 
submit a master plan document for the proposed deve lopment of the park, including project stages and 
time-frames.  
 Prior to initiating operations, the applicant enterp rise shall draw up ge neral regulations on the 
functioning of the park, in accordance with the terms of these Regulations. 
  G/SCM/N/186/CRI 
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 Page 27 
 
 
  Article 25.- Minimum infrastructure for a park with processing or mixed enterprises 
 
 The minimum infrastructure facilities allowing authorization as a duty-free zone park shall be those with capacity for the installation of at l east 12 enterprises operating under the Regime, whether 
solely as export processing enterprises or in conjun ction with enterprises in other categories listed 
under Article 17 of Law No. 7210 and amendments ther eto, subject to verification to the satisfaction 
of PROCOMER.   In the situations referred to in Article 22 of these Regulations, for the purposes of the 
preceding paragraph the consortium enterprises shall be regarded as a single enterprise. 
 
Article 26.- Minimum infrastructure for a park  with service supply and trading enterprises 
 
 The minimum infrastructure facilities allowing registration as a duty-free zone in the case of a 
park intended solely for service supply and/or trading enterprises shall be the provision of an available 
area for construction of at least 4,000 square metr es intended for occupation by enterprises covered by 
the Regime, subject to verification to the satisfaction of PROCOMER.  
Article 27.- Installation of enterprises no t covered by the Regime within a park 
  If enterprises not covered by the Regime set up in the park, the mana gement enterprise shall 
notify the Directorate-General of Taxation and the Directorate, within three working days, of the execution of the sales contract, to enable each Di rectorate to act in accordance with its powers and 
areas of competence with regard to monitoring the exemptions established in Article 20 of Law 
No. 7210 and amendments thereto, as well as the pro rata  reduction of the other exemptions, pursuant 
to Article 22 of the aforementioned Law. 
 
Article 28.- Substitution of a park management enterprise 
 
 The substitution of an enterprise managing a duty -free zone park shall be in accordance with 
the conditions, requirements and procedures laid down in Articles 42 to 47 of these Regulations. 
 
Article 29.- Extension or reduction of the area of a duty-free zone park 
 
 Enterprises managing duty-free-zone parks may extend or reduce the area of the park in 
question provided that they comply with the following conditions and requirements: 
 
 (a) The area added shall be on land contiguous with the area previously authorized as a 
duty-free zone park or mutually separated therefrom by an easement, a public highway, a railway, a private road, river, stream or water course, whether or not permanent, contiguous therewith.  More over, the resulting total area following 
extension or reduction shall always be ma intained as a property, or properties, 
independent for registration purposes.  Reductions that affect the minimum 
infrastructure required at the time the park was authorized as a duty-free zone park or the minimum total available building area re quired for parks intended exclusively for 
service supply or trading enterprises shall not be accepted. 
 
Where the park is extended on land separat ed by an easement, a public highway, a 
railway, a private road, river, stream or wa ter course, whether or not permanent, the 
management enterprise shall guarantee the exis tence of a single register for recording 
goods entering and leaving the duty-free zone park, for the various purposes for which the legislation provides; G/SCM/N/186/CRI 
G/SCM/N/192/CRI Page 28 
 
 
   
 (b) if the area is to be extended by adding one or more buildings or specific floors in a 
building, the land on which such buildings ar e situated shall also be contiguous with 
the area of the park previously authorized  as a duty-free zone, or mutually separated 
therefrom by an easement, a public highway, a railway, a private road, river, stream 
or water course, whether or not permanen t, contiguous with the area previously 
authorized as a duty-free zone park.  In the case of buildings, only complete floors 
may be added or excluded; 
 
If extension of the park results in land separated by an easement, a public highway, a 
railway, a private road, river, stream or wa ter course, whether or not permanent, the 
management enterprise shall guarantee the exis tence of a single register for recording 
goods entering and leaving the duty-free zone park, for the various purposes for which the legislation provides; 
 
 (c) the park area resulting from the extensi on or reduction shall be such that it can be 
subjected to the necessary procedures for c ontrolling the entry and exit of goods, in 
accordance with the General Customs Law a nd its implementing Regulations and the 
corresponding operational policies of the Directorate.  Compliance with this 
obligation shall be verified by the Director ate after the new area has been authorized 
by the Executive.  In such case s, the provisions in the articles concerning approval of 
new areas and annulling approval of ar eas in these Regulations shall apply; 
  (d) if the properties or property to be added do(es) not belong to the enterprise managing 
the park, the application shall be accomp anied by a document in which the owner 
expressly agrees to the good or goods in hi s ownership being assigned to the Regime 
and undertakes to comply, where appropria te, with the laws and regulations 
governing the Regime, as required by PROC OMER and the Directorate.  The fact 
that the park management enterprise is not th e registered owner of one or more of the 
properties that make up the park does not limit or diminish its responsibilities and obligations as manager, within the terms of Law No. 7210 and amendments thereto 
and these Regulations, and the management enterprise shall therefore adopt all the 
contractual provisions necessary in its relations with the owners and/or lessees of properties that make up the park; 
  (e) if the infrastructure or buildings of th e area for which exclusion is being requested 
have been built using any form of statut ory tax concession provided by the Law for 
development enterprises and duty-free zone pa rk managers, the applicant enterprise 
shall proceed to refund the taxes corres ponding to those concessions, as determined 
by the Ministry of Finance.  For the purposes of the corresponding calculation, the beneficiary enterprise shall submit to the Mini stry an expert's report by a professional 
accredited by the Federated College of Engineers and Architects of Costa Rica 
(Colegio Federado de Ingenieros y Arquitectos de Costa Rica ), indicating the amount 
and value and giving a separate description of all the materials used in order to determine the corresponding taxes.  The ar ea reduction application shall not become 
effective until such taxes have been refunded; 
 
If the enterprise built the area whose authorization is being annulled without making 
use of tax concessions, it shall submit the application accompanied by a certificate from an approved certified public accountant stating the situation, including invoices and/or customs declarations and any other relevant documentation; 
  G/SCM/N/186/CRI 
 G/SCM/N/192/CRI 
 Page 29 
 
 
   (f) for the purposes of subparagraph (ch) of  Article 17 of Law No. 7210 and amendments 
thereto, an enterprise covered by the Regime shall be considered to be set up in a park 
if it operates within the area authorized as a park, whether as owner or lessee.  The management enterprise shall inform PROCOMER and the Directorate of any change 
in the ownership or occupation of the area authorized as a park, by such means and in 
such form as these bodies may specify. 
 
Article 30.- Relinquishment or revocatio n by a park management enterprise 
  Once the final administrative decision has been taken concerning the revocation or 
relinquishment of the Regime by a park manageme nt enterprise, with all its legal consequences, 
PROCOMER shall take steps to notify all the Regime  beneficiary enterprises that operate within the 
relevant park accordingly.  In the aforesaid notifi cation, they will be urged to propose a management 
enterprise.  When the park opera tes within the framework of the rules regulating the property as a 
condominium, the current administrator of the c ondominium may be proposed.  In the absence of a 
satisfactory proposal PROCOMER may, by means of an announcement published in the official 
journal, La Gaceta , and in at least one national newspaper, call upon any interested party to act as the 
management enterprise.  Once an enterprise ready to act as a manager has been found and the 
procedures laid down in this Article have been completed, PROCOMER shall make its 
recommendation to COMEX.  The new management ente rprise shall be up to date in fulfilling its tax 
obligations and comply with the requirements to enjoy Regime status. 
  Until such time as a new management enterprise has been designated, the Regime beneficiary 
enterprises located in the park shall continue to  apply the security and supervisory measures on the 
entry and exit of merchandise and persons.  This provision is wit hout prejudice to the legal powers 
possessed by PROCOMER in this matter. 
 
Article 31.- Day care centre for beneficiary enterprises 
 
 Park management enterprises that have a ch ildren's day care centre whose capacity makes it 
possible for them to provide day care services to other beneficiary enterprises under the Regime 
located outside the park may provide such a service. 
 
CHAPTER V 
Applications relating to enterprises based outside the duty-free zone park 
 
Article 32.- Examination of the application 
 
 In the case of applications from enterprises wi shing to set up outside a duty-free zone park, 
the provisions of Chapter III of these Regulations a pply, but PROCOMER shall also be required to 
establish the following aspects in particular:  
 (a) That the application relates to an export processing enterprise; 
  (b) that the characteristics of the production process or the nature of the project prevent 
its being carried out within a park; 
 
 (c) that the enterprise is able to comply wi th the supervisory mechanisms for monitoring 
the entry and exit of goods and persons, in accordance with the General Customs 
Law, its implementing Regulations, and operati onal policy instructions in this regard 
issued by the Directorate; 
 G/SCM/N/186/CRI 
G/SCM/N/192/CRI Page 30 
 
 
   (d) that the enterprise complies with the obligation laid down in Article 14 and other 
relevant provisions of Law No. 7210 and amendments thereto. 
 
Article 33.- Amount of the minimum initial inv estment for enterprises located outside a park 
 
 Enterprises intending to set up outside a pa rk shall comply with the minimum initial 
investment amount in fixed assets required under Law No. 7210 and amendments thereto, in accordance with the criteria set down in Chapter II of these Regulations. 
 Article 34. - Report of the Ministry of Finance 
 
 In the case of applications from enterprises intendi ng to set up outside a park, on receipt of 
the final recommendation from PROCOMER, or before hand if this is seen as appropriate, COMEX 
shall carry out the mandatory consultation with the Ministry of Finance pursuant to Article 18(ch) of 
Law No. 7210 and amendments thereto. 
  In its report, the Ministry of Finance shall verify the existence of a project to build the 
physical installations of the applicant enterprise,  as well as any other aspect the Ministry sees fit to 
raise.  
CHAPTER VI 
Approval of new areas 
 
Article 35.- Applications for approval of new areas 
  Applications for approval of new areas, eith er through increase or extension, shall be 
submitted to PROCOMER on the appropriate form.   PROCOMER shall examine the application and, if  it finds it to be in order, shall send a copy 
to the Directorate, together with the corresponding authorization, within a period of not more than 
five working days from receipt of the complete appli cation.  The authorization shall be subject to the 
new area's compliance with the requisite fiscal and customs controls, confirmation of which shall be 
provided by the competent Customs authorit y in the terms set out in these rules. 
  After having received the documentation, the Directorate shall process the application for approval of the areas in accordance with the following criteria: 
 
 (a) New areas authorized within a park:   The Directorate shall issue any resolution 
authorizing new areas within at most two working days of being notified of the authorization by PROCOMER.  In such cas es, in accordance with Article 4 of Law 
No. 7830 of 22 September 1998, the Directorate, pursuant to Article 4 of Law No. 7830 of 22 September 1998, shall not carry out an inspection of the installations.  
Notwithstanding the foregoing, once the new areas are operating, the Customs 
authority, using its statutory powers, may carry out the visits and inspections it 
considers pertinent and, if it finds any failu re to comply with the requirements that the 
installations must meet, shall take the a ppropriate steps to establish the penalties for 
which the legislation provides. 
 
 (b) New areas authorized outside a park:   The Directorate shall issue the resolution 
authorizing new areas subject to inspection of  the installations.  The Directorate shall 
issue the resolution within 15 working days of  receipt of the application forwarded by 
PROCOMER.  G/SCM/N/186/CRI 
 G/SCM/N/192/CRI 
 Page 31 
 
 
   
 (c) New park areas authorized:   The Directorate shall issu e the resolution authorizing 
new areas subject to inspection of the inst allations.  The Directorate shall issue the 
resolution within 15 working days of receipt of the application forwarded by 
PROCOMER. 
  After approval by the Directorate, the appr oval of new areas under the pertinent resolution 
shall be notified to the beneficiary enterprise and to PROCOMER.  Article 36.- Increase in areas 
 
 An increase in area means an expansion of the area previously authorized for the Regime 
beneficiary enterprise, provided that  the new areas are not contiguous. 
 
 Beneficiary enterprises may increase their areas of operation as follows: 
  1. Enterprises located outside a park may increase their areas of operation:  
(a) Within a duty-free zone park; 
 
(b) outside a duty-free zone park. 
  2. Enterprises located within a park  may increase their areas of operation: 
 
(a) Within the same duty-free zone park; 
 
(b) in another duty-free zone park; 
 
(c) outside a duty-free zone park if it is a satellite plant. 
  3. Park management enterprises:  these enterprises may increase their areas of operation 
provided that the increased area comp lies with the customs controls and 
responsibilities imposed under the law in force on beneficiary enterprises under the Duty-Free Zone Regime. 
  In all the foregoing cases, the beneficiary ente rprises shall meet the following conditions and 
requirements: 
  (a) The increased area shall be for the activities authorized  under the Regime.  To that 
end, the increase in the operating area sha ll fulfil the same obligations as those 
imposed by the General Customs Law and its implementing Regulations, as well as 
Law No. 7210 and its Regulations, on Regime  beneficiary enterprises, in terms of 
customs supervision; 
  (b) the enterprise's inventories shall reflec t the place where the goods are located.  This 
information shall be made available to the Customs authority at any of the enterprise's 
sites. 
 
Article 37.- Extension of areas 
 
 Extension of an area means an increase in  the area of buildings, storage yards or both, 
whether in contiguous land or separated by an easement, a public highway, a railway, a private road, G/SCM/N/186/CRI 
G/SCM/N/192/CRI Page 32 
 
 
  river, stream or water course, whether or not pe rmanent.  Enterprises under the Regime may extend 
the area of their installations provided that the z one approved is intended fo r the receipt, deposit, 
inspection, clearance and production of merchandise or any other of the enterprise's own activities, 
and is demarcated and identified.  To that end, th e extension of the approved area shall meet the same 
obligations as those imposed on Regime beneficiary enterprises, in terms of customs supervision. 
 
CHAPTER VII 
Annulment of approval of areas 
 
Article 38.- Application for annulment of approval of areas 
 
 Applications for annulment of approval of areas shall be submitted to PROCOMER on the 
appropriate form, with a detailed i nventory of all the merchandise to be found in the area for which 
approval is to be annu lled and its finality. 
 
 PROCOMER shall examine the application and, if it considers it in order, shall forward a 
copy to the Directorate, together with the corresponding authorization.   The Directorate, through its Registration De partment shall request the Customs Control 
Office to inspect the installations in order to veri fy that the inventory submitted together with the 
application matches the merchandise effectively to  be found in the installations, and that the 
remaining area complies with the relevant fiscal and customs requirements.   For this purpose, the Customs official shall draw up a report containing the information on the 
merchandise and its finality and, using the approp riate form, shall determine that the remaining 
installations comply with the relevant requirements.   This inspection shall be  conducted not later than 
ten working days after notification of the request  for inspection by the Registration Department. 
  After the installations have been inspected a nd the report has been drawn up, if there are no 
objections, the enterprise may have access to the me rchandise according to the finality indicated and 
in compliance with the corresponding procedures.  The Customs shall send immediately to the 
Registration Department the original of the fo rm drawn up during the inspection so that it may 
proceed with the application for annulment.   Following expiry of the time-limit indicated, if  the Customs has not conducted the inspection, 
the enterprise shall draw up a report containing the aforementioned information and shall send a copy 
thereof to the Customs Control Office and the Regi stration Department so that it may proceed with 
issuing the corresponding resolution on annulment.  The Registration Department shall issue this resolutio n within three working days from receipt of the 
documentation forwarded by the Customs Control Office or by the enterprise, as appropriate. 
 
For the foregoing purposes, the merchandise may be sent to other installations of the enterprise, to a 
Customs agent in accordance with the rules applicable to such cases or be re-exported or imported, in 
conformity with the procedures in force.  
Article 39.- Forms of annulment of authorization 
 
 After the Directorate has received the documentation containing the findings of the inspection, it shall examine the application fo r annulment of the area, in accordance with the 
following criteria:   G/SCM/N/186/CRI 
 G/SCM/N/192/CRI 
 Page 33 
 
 
   (a) Closure of one of the enterprise's facilities:   An application to close one of the 
facilities shall be considered if the enterpri se intends to annul approval for one of its 
facilities but continue operating the others  under the Regime.  In such cases, the 
Directorate, following the procedure laid down in this Chapter, shall cancel the 
location code. 
  (b) Reduction of the enterprise's area:   An application for reduction of an area shall be 
considered if the enterprise intends to reduce the size of one of its facilities.  In such 
cases, it shall retain the code granted for the location whose area is to be reduced. 
 
Article 40.- Payment of taxes 
 
 If the areas for which annulment is being re quested have been built using any form of 
statutory tax concession provided by the Law for Regime beneficiary enterprises, the applicant 
enterprise shall proceed to ref und the taxes corresponding to those concessions, as determined by the 
Ministry of Finance.  For the purposes of the co rresponding calculation, the beneficiary enterprise 
shall submit to the Ministry an expert's report by a professional accredited by the Federated College of 
Engineers and Architects of Costa Rica ( Colegio Federado de Ingenieros y Arquitectos de 
Costa Rica ), indicating the amount and value and giving a separate description of all the materials in 
order to determine the corresponding taxes.  The app lication for annulment shall not become effective 
until such taxes have been refunded. 
  If the enterprise put up the building without making use of tax concessions, it shall submit the 
application for annulment accompanied by a certificate from an approved certified public accountant stating the situation, including invoices and/or customs declarations and any other relevant 
documentation. 
 
Article 41.- Issue of the resolution 
 
 After having examined all the factors determined  in this Chapter, the Directorate shall issue 
the resolution annulling approval of the area, which sh all be notified to the beneficiary enterprise and 
to PROCOMER. 
 
Article 42.- Substitution of a beneficiary enterprise 
 
 The substitution of a beneficiary enterprise may be authorized provided that the substitute 
enterprise meets the requirements to enjoy Regime status, and that it is stipulated that the said 
enterprise shall assume all the obligations arising from its enjoyment of Regime status, including 
those deriving from the use and finality of goods bro ught in under the Regime with tax concessions.  
The status assumed by the substitute enterprise includes any responsibilities arising from the actions 
of the substituted enterprise.  Article 43.- Substitution document 
 
 Enterprises that are party to the substitution shall draw up a document stating the following: 
  (a) The desire of both parties to effect the substitution in the terms laid down in 
Article 42 of these Regulations; 
  (b) the substitute enterprise expressly assum es all the responsibilities arising from acts by 
the substituted enterprise in connection w ith the obligations and duties assumed G/SCM/N/186/CRI 
G/SCM/N/192/CRI Page 34 
 
 
  vis-à-vis  the Ministry of Finance, COMEX and PROCOMER relating to the 
Duty-Free Zone Regime, without prejudice to any provisions in other rules. 
  This document shall be drawn up by the le gal representative of both enterprises and the 
signatures shall be authenticated by an attorney-at-law or public notary. 
 
Article 44.- Application for substitution 
 
 The relevant application shall be submitte d to PROCOMER by the substitute enterprise and 
shall contain the following information: 
 
I. Information common to the application for substitution of the Regime and status as a 
Customs Service Auxiliary: 
  (a) Name and identity number of the substitute enterprise; 
  (b) name and identity number of the benefici ary to be substituted and indication of the 
number of the Executive Resolution authorizing the Regime; 
  (c) address or means of notification of the substitute enterprise; 
 
 (d) ownership of the property:  indicate whet her the property is owned by the substitute 
enterprise or leased; 
  (e) telephone number, fax and e-mail a ddress of the substitute enterprise; 
 
 (f) name of the legal representative of the s ubstitute enterprise, with an indication of the 
identity document and number; 
  (g) sworn statement from the substitute enterprise indicating that:  
(i) the enterprise is not engaged in th e manufacture or marketing of weapons of 
any kind (whether permitted or prohibite d) or of components, assemblies or 
sub-assemblies used exclusively in the defence industry; 
 
(ii) the enterprise is listed in the Mini stry of Finance's Register of Taxpayers; 
 
(iii) the enterprise is up to date with th e payment of all its contributions to the 
Costa Rican Social Security Fund; 
 
(iv) the enterprise, its shareholders, directors, employees or representatives have 
not been convicted by final administra tive resolution in connection with the 
enterprise's activities for administra tive, customs, tax or customs tax 
offences; 
 
(v) the enterprise, its shareholders, dir ectors, employees or representatives of the 
enterprise have not been convicted by final Court judgement in connection 
with the enterprise's activities for customs or tax offences; 
 
(vi) the enterprise, its shareholders or any potential beneficiary is not entitled to 
discount the taxes exempted in Costa Rica in its country of origin; 
  G/SCM/N/186/CRI 
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 Page 35 
 
 
  (vii) the enterprise is not a banking, fi nancial or insurance entity and does not 
provide professional services; 
 
(viii) the enterprise has suita ble software for the electronic transmission of data to 
the National Customs Service's computer system; 
 
(ix) the enterprise undertakes to comply w ith the legal, regulatory and procedural 
provisions on the control and safety of the merchandise applicable to its installations; 
 
 (h) the signature on the form shall be auth enticated by an attorney-at-law or notary 
public. 
 
II. Information required for requesting status  as a Customs Service Auxiliary of the 
substitute enterprise: 
 
 (a) Name and identity of the staff members who will deal directly with the National 
Customs Service; 
  (b) sworn statement showing that the regi stered owner has granted the appropriate 
authorization to operate on the premises in  which the activity under the Regime will 
take place; 
  (c) sworn statement, registered with a notary , attesting to the existence of a place suitable 
for the safekeeping of the documents whic h, in accordance with its status as a 
Customs Service Auxiliary, it is required to keep;  and the address of this place. 
 
III. Documentation common to applications for substitution under the Regime and status as 
a Customs Service Auxiliary 
 
 (a) The substitution document indicated in Article 43 of these Regulations; 
 
 (b) copy of the certificate from a certified public accountant containing a detailed 
inventory of the goods that have been en tered by the substituted enterprise under the 
terms of the Regime and showing the receipt of the original certificate by the Customs Control Office of the beneficiary enterprise; 
 
 (c) on the basis of the certificate mentioned in  the previous subparagraph, the enterprise 
substituted shall identify the goods that will be  transferred to the substitute enterprise 
and the goods that will be definitively re -exported or imported.  If there are goods 
definitively re-exported or imported, it sha ll provide the documents that demonstrate 
the performance of such operations, where applicable; 
 
 (d) a copy of the notice published in a national newspaper announc ing the enterprise's 
intention to substitute the Regime; 
  (e) certificate of legal personality issued not more than three months previously for the 
substitute enterprise and the enterprise substituted; 
  (f) special power of attorney if the applica tion is made by a person other than the legal 
representative, with express mention of the f act that the power of attorney authorizes G/SCM/N/186/CRI 
G/SCM/N/192/CRI Page 36 
 
 
  him to submit the application for substituti on and acquisition of the status of Customs 
Service Auxiliary; 
  (g) copy, certified by a public notary, of the front and back of the identity documents of 
the legal representative of the substitute ente rprise and of the staff member who will 
deal directly with the National Customs Service; 
  (h) copy, certified by a public notary, of the substitute enterprise's legal certificate; 
 
 (i) if the applicant is a natural pers on, the following shall also be included: 
 
(i) copy, certified by a public notary, of  the front and back of the applicant's 
identity document; 
 
(ii) document issued by the Costa Rican Social Security Fund certifying that the 
applicant does not work for the Costa Rican State, its autonomous or semi-autonomous institutions or Stat e-owned enterprises, pursuant to 
Article 29 bis of the General Customs Law; 
 
(iii) certificate from the Offenders Register (to be procured directly from the 
entity responsible for labour matters). 
 
Article 45.- Verification of compliance with tax and/or customs obligations by the beneficiary 
enterprise 
  In order to verify that the beneficiary enterprise does not have any pending administrative 
procedures or tax and/or customs obligations aris ing from the Regime, PROCOMER shall request the 
corresponding certificates from the Directorate, the Directorate General of Taxation and the Directorate-General of Finance.  
Article 46.- Examination of the substitution application 
 
 PROCOMER shall verify the compliance of th e substitution application and the requirements 
laid down in Articles 43, 44 and 45 of these Regulati ons and, if it is satisfi ed, within five working 
days shall make its recommendation to COMEX,  which shall proceed with the corresponding 
resolution within two working days following receipt of the recommendation. 
 
 As soon as the Executive has authorized the substitution, on the following working day, 
PROCOMER shall send the Directorate a certified co py of the file compiled for this purpose and 
containing the information and docum entation submitted by the enterprise so that the Directorate may 
satisfy itself that the file conforms with the provi sions of Article 43 of these Regulations relating to 
the application for granting of status as a Custom s Service Auxiliary.  If the information provided is 
complete, within ten working days of receipt of th e file, the Directorate shall issue the resolution on 
substitution of the status of Customs Service Auxiliary.   If the Directorate determines that the informa tion provided does not meet the requirements of 
the aforementioned Article, within two working da ys, it shall inform PROCOMER, which shall give 
the enterprise a formal warning within the same ti me limit, allowing it ten working days within which 
to comply.   Until the substitute enterprise has acquired th at status, it may not undertake any kind of 
customs operation under the Regime.  G/SCM/N/186/CRI 
 G/SCM/N/192/CRI 
 Page 37 
 
 
  Article 47.- Finality of the goods entered under the Regime 
 
 Within not more than 15 working days from notification of the Executive Resolution 
authorizing the substitution, the en terprise substituted shall proceed to re-export, definitively import 
and/or transfer to the substitute enterprise the goods that have entered under the Regime.  If this is not 
done, the provisions contained in Article 56 of the General Customs Law shall apply. 
 
CHAPTER VIII 
Satellite plants, secondary plants and warehouses 
 
Section I 
Satellite plants and secondary plants 
 
Article 48.- Authorization for satellite plants and secondary plants 
 
 In the case of applications from Regime benefi ciary enterprises to set up satellite plants or 
secondary plants, as appropriate, the relevant provi sions of Chapter VI of these Regulations shall 
apply, but PROCOMER shall also be required to establish the following aspects in particular: 
  (a) That there are considerations of availa bility of manpower, transport, raw material 
handling capacity or other similar releva nt considerations such as to justify 
authorization of a satellite or secondary plant; 
  (b) that the enterprise undertakes, and has th e capacity, to set up, the relevant tax and 
customs monitoring arrangements for the sat ellite plants or secondary plants, in a 
manner satisfactory to the Directorate. 
 
Article 49.- Inward clearance into national customs territory, imports and exports from a 
satellite or secondary plant 
 
 Subject to duly justified and reasoned a pplication from the enterprise, PROCOMER may 
authorize inward clearance into national customs territory, import and/or export of merchandise under 
the Regime directly from a satellite or secondary  plant, as appropriate, and shall formally 
communicate this to the Customs Control Office.   The Customs Control Office shall keep the r ecords and undertake the inspections for the 
transactions carried out by the satellite or secondary pl ant, as appropriate.  In such cases, the satellite 
or secondary plant shall comply with any additiona l monitoring mechanisms set down in the General 
Customs Law and its im plementing Regulations. 
 
Section II 
Warehouses 
 
Article 50. – Authorization of warehouses 
 
 In exceptional cases, within a period not ex ceeding three working days, PROCOMER shall 
authorize the use of warehouses for the storage of raw materials and merchandise.  For authorization 
to use a warehouse, the Regime be neficiary shall apply to PROCOMER for the corresponding permit.  
Once this is granted, it shall apply for an operati ng authorization from the Directorate, producing the 
permit granted by PROCOMER.  The Directorate shall grant the authorization within a period not exceeding five working days.  G/SCM/N/186/CRI 
G/SCM/N/192/CRI Page 38 
 
 
   Warehouses shall only be authorized within a park if there is not sufficient space in the 
principal plant.  If the warehouse is located in a park under a jurisdiction different to that of the 
principal plant, customs monitoring shall be carried  out by the Customs office with jurisdiction for the 
location of the warehouse. 
 
 Inward clearance into national territory, im port and export under the Regime may not be 
carried out from such warehouses, except in duly substantiated and justified cases authorized by 
PROCOMER upon request by the enterprise.  If su ch authorization is given, PROCOMER shall 
formally notify it to the Customs Control Office. 
 
 For movements of merchandise between th e principal plant and the warehouse, the 
appropriate Duty-Free Zone Customs Declaration shall be used;  this shall not be required if both are 
located within the same park.  The foregoing sh all be without prejudice to the proper internal 
monitoring and inventory records which the enterpri se shall undertake so as to enable satisfactory 
control. 
 
Article 51.- Temporary storage of merchandise 
 
 Exceptionally, for reasons of space, beneficiary enterprises may temporarily store merchandise that has entered under the Regime in cu stoms warehouses, subject to authorization by the 
Customs Control Office. 
  In this case, the merchandise shall continue under the Duty-Free Zone Regime and remain the 
responsibility of the beneficiary enterprise, without prejudice to the responsibilities that may accrue to the customs warehouse. 
 
CHAPTER IX 
Modification of the resolution granting Regime status and 
relinquishment of Regime status 
 
Article 52.- Modification of the terms of resolutions granting Regime status 
 
 Any change in the conditions or activities of a Regime beneficiary enterprise, envisaged in the 
Law, that requires modification of the terms of the resolution granting Regime status, with the 
exception of those cases provided in these Regulations directly authorized by PROCOMER, shall be subject to prior authorization from the Executive.   The enterprise in question shall submit an 
application to this effect to PROCOMER, accomp anied by the information and documentation on 
which the application is based.   PROCOMER shall authorize applications that refer to the aspects below without the need for 
prior approval by the Executive:  
 (a) Date of commencement of production activities; 
  (b) date of compliance with the initial new investment requirement; 
  (c) date of compliance with the total investment requirement; 
 
 (d) date of compliance with the employment positions requirement;   (e) change in trade name or change in the company's situation in the terms laid down in 
the Commercial Code.  G/SCM/N/186/CRI 
 G/SCM/N/192/CRI 
 Page 39 
 
 
   
 PROCOMER shall process such applications according to the procedures set down in Chapter III of these Regulations, as applicable.  
 Modifications to the terms of the resolution gr anting Regime status shall take effect on the 
date on which the corresponding authorization is notified to the beneficiary enterprise.  For all purposes, the aspects modifying the resolution gr anting Regime status shall be automatically 
incorporated into the operations contract without the need to draw up an addendum.  Article 53.- Application to relinquish the Regime 
 
 Where a beneficiary enterp rise wishes to relinquish Regi me status, it shall notify 
PROCOMER and the Directorate accordingly one mont h in advance.  PROCOMER shall ensure that 
the following requirements have been met: 
 
 (a) That the enterprise is up to date with pa yment of fees for use of the regime and other 
obligations set down in Law No. 7210 a nd amendments thereto, and in these 
Regulations; 
  (b) that the enterprise is up to date with its customs tax obligations, on the basis of a 
sworn statement issued by its legal representative; 
  (c) that the enterprise is up to date with payment of its employer's dues;   (d) that the enterprise announces its intenti on to relinquish Regime status by a notice 
published in a national daily newspaper; 
  (e) that the enterprise submits a copy of the notification concerning its intention to 
withdraw from the Regime, duly stamped and receipted by the competent Customs Control Office for the enterprise. 
 Article 54.- Relinquishment procedure 
 
 On completion of the above verification pro cesses, PROCOMER shall forward a report to the 
Minister of Foreign Trade so that the Executive may adopt the appropriate resolution, on the relinquishment application submitted. 
 
 As of acceptance of the relinquishment applica tion from the party concerned by the Board of 
Directors or competent entity of PROCOMER, all Regi me benefits for the enterprise in question shall 
be suspended, and notification shall be sent on th e same day to the Customs Control Office and the 
Directorate for appropriate action.  The only tr ansactions permitted shall be those required for 
payment of tax on goods purchased under the Regime, th eir re export or sale to special regimes, to be 
carried out within 15 days of notification of  acceptance of the relinquishment application. 
  The deed of acceptance of the relinquishment app lication issued by the Board of Directors or 
the competent entity of PROCOMER shall order cancellation of charges for the fees for using the Regime. 
 
 When the party concerned has submitted th e items specified in Article 55 of these 
Regulations to PROCOMER, the guarantee deposit shall be returned to the part y, less any outstanding 
amounts payable to PROCOMER.  G/SCM/N/186/CRI 
G/SCM/N/192/CRI Page 40 
 
 
  Article 55.- Return of the guarantee deposit 
 
 To secure the return of the guarantee deposit, the party concerned shall present a certificate, 
issued by a certified public accountant, stating that the remaining materials, merchandise, machinery 
and equipment purchased under the Regime have been  duly disposed of and that all the relevant 
customs transactions have been completed.  This  certificate shall cover the period between the most 
recent financial year-end date and the date of the disposal of all of the materials, merchandise, 
machinery and equipment purchased under the Regime.  In addition, the enterprise shall forward a 
copy of the notification of the Executive Resolu tion on relinquishment published in the official 
journal, La Gaceta . 
 
CHAPTER X 
Rights and obligations of beneficiaries under the Regime 
 
Article 56.- Rights and obligations 
 
 Enterprises covered by the Regime shall be  entitled to invoke the tax exemptions and 
concessions set down in Law No. 7210 and amendments thereto, provided that they remain up to date 
at all times with compliance with the requirement s and conditions laid down in the said Law, these 
Regulations, and any relevant instructions issued  by PROCOMER or the Ministry of Finance. 
 
Article 57.- Exemption for motor vehicles and transport units 
 
In conformity with Article 20(b) of Law No. 7210  and amendments thereto, Regime beneficiaries 
may enjoy exemption from all taxes and consular fees on imports of motor vehicles and transport 
units required for their operational, production, ad ministrative and transport activities.  The following 
vehicles shall be exempt:   (a) Chassis and cabins of vehicles with one to two tonnes load capacity;   (b) trucks or truck chassis; 
 
 (c) "pick-ups" of one to two tonnes, a single or double cabin, and with a maximum 
cylinder capacity of 4,000 cubic centimetres; 
  (d) vehicles with capacity for at least 15 passengers. 
 
 In order to enjoy this benefit, the inter ested party shall submit to PROCOMER a formal 
application for exemption, using the form designed for that purpose by the Ministry of Finance.  The beneficiary shall state on that form, by a sworn stat ement, the use to be made of the vehicles or 
transport units for which exemption is requested.  
 Provided that the application for exemption complies with the requirements laid down in 
Article 20(b) of Law No. 7210 and the provisions of these Regulations, PROCOMER shall make the 
corresponding recommendation to the Exemptions Depa rtment of the Directorate-General of Finance 
within a period of five working days of receiving the complete application.  Article 58.- Exemption procedure for motor vehicles and transport units 
 
 It shall be the responsibility of the Ministry of Finance, through the Exemptions Department 
of the Directorate-General of Finance, to gran t authorization for the exemption of vehicles and 
transport units in accordance with the provisions in  Law No. 7210 and amendments thereto, and the  G/SCM/N/186/CRI 
 G/SCM/N/192/CRI 
 Page 41 
 
 
  Law Regulating all Current Exemptions, Derogati ons and Exceptions, No. 7293 of 31 March 1992 
and amendments thereto;  to exercise due supervis ion of the procedures for exemption and payment of 
taxes for the relevant vehicles so as to ensure proper supervision of the goods exempted;  to carry out 
enquiries so as to check that the various offices involved duly carry out the functions laid down in 
these Regulations and other functions indicated in the relevant legislation. 
 
Article 59.- Effective entry of the vehicle or transport unit under the Regime 
 
 In order to bring in the vehicle and/or transport unit under the Regime, once exemption has 
been granted by the Ministry of Finance, the beneficiary shall fill out a Duty-Free Zone Customs 
Declaration with the exemption as approved attached to it.   Once the above-mentioned procedure has been co mpleted, in order to obtain the special 
"ZFE" number plates, the beneficiary shall apply to PROCOMER for a certificate to be sent to the 
National Registry Office, requesting the registration of the exempted vehicle and the granting of the 
above-mentioned number plates.  
Article 60.- Conditions for the use of vehicles or transport units 
 
 Beneficiary enterprises shall comply with the following requirements for the use of the 
exempted vehicles or transport units: 
  (a) Ensure that the vehicles or transport units to be used under the Regime remain 
registered with the Directorate; 
 
 (b) use the vehicles or transport units solely and exclusively for tasks directly related to 
the activity of the beneficiary enterprise; 
  (c) mark the vehicles or transport units w ith a distinctive sign on both front doors where 
possible or in any other visible place, show ing the emblem or logo and the name of 
the beneficiary enterprise, together with the words " Uso exclusivo de zona franca " 
(For use exclusively in the duty-free zone).  This sign shall have at least the following 
dimensions:  30 cm. long, 20 cm. wide and with  letters that are at least 2 cm. high.  
The colours of the sign shall contrast with the colour of the vehicle or transport unit so as to be easily visible; 
 
 (d) bear the special number plates provided by the National Registry Office; 
  (e) be driven by the persons authorized by the beneficiary enterprise registered with the 
Directorate for the purposes of activities directly and strictly related to the 
operational, administrative, production and tr ansport activities of the enterprise.  In 
such circumstances, the driver shall carry in  the vehicle or transport unit the relevant 
authorization for use issued by the le gal representative of the beneficiary; 
  (f) keep a register of the persons authorized  by the Directorate to drive the vehicles or 
transport units of the beneficiary enterprise. 
 Article 61.- Use of vehicles or transport units for unauthorized activities 
 
 The use of the vehicle and/or transport unit for unauthorized activities or by persons other than those authorized by the beneficiary shall i nvolve the loss of the benefit granted pursuant to G/SCM/N/186/CRI 
G/SCM/N/192/CRI Page 42 
 
 
  Article 20(b) of the Duty-Free Zone Regime Law a nd give rise to confiscation of the vehicle by the 
competent authorities.  
Article 62.- Obligations of beneficiaries of the Regime 
 
 The following obligations apply to beneficiaries of the Regime:   (a) To comply with requirements specifi ed by PROCOMER and the tax and Customs 
authorities in the performance of  their monitoring functions; 
 
 (b) to set up accounting and operating systems allowing continued checks to be carried 
out on the entry, presence and exit of bot h the beneficiary's own and consigned 
materials and merchandise.  It shall be po ssible to determine the use, processing and 
location of such goods from its accounting systems or regular merchandise inventory 
records; 
  (c) to cooperate to the best of its ab ility with PROCOMER and the tax and Customs 
authorities in the performance of  their monitoring functions; 
  (d) to maintain an updated inventory reco rd of all goods inward cleared under the 
Regime; 
  (e) to submit an annual report on activities to  PROCOMER, in the manner laid down in 
these Regulations, and any other reports requested by PROCOMER, COMEX or the 
tax and Customs authorities in the performa nce of their functions.  The annual report 
on activities may be submitted by the Regime beneficiary to PROCOMER by 
electronic data transmission, using the fo rmats and procedures established for such a 
purpose. 
 
If the report is submitted by electronic data transmission, Article 23 of these Regulations shall apply. 
 
The supporting documents that the benefici aries shall append to the report shall 
include a sworn statement made by the lega l representative stating the use that has 
been made, during the financial period, of the vehicle(s) which has/have been brought 
in under the terms of the Regime, together with a copy of the certificate of ownership 
issued by the National Registry Office; 
  (f) to lodge and maintain a guarantee deposit in favour of PROCOMER;   (g) to pay promptly the fees for use of the Regime;  
 (h) to comply with environmental, town planning, public health and other relevant 
regulations, according to the type of activit y conducted by the enterprise, and to hold 
the required operating permits at all times; 
  (i) to comply with the minimum requirement s as regards the level of initial investment, 
projected investment, employment positions  and other requirements laid down in the 
relevant resolution granting Regime status; 
  (j) to provide PROCOMER with all informa tion requested by it in connection with the 
administration of the Regime, in a timely manner;  G/SCM/N/186/CRI 
 G/SCM/N/192/CRI 
 Page 43 
 
 
   
 (k) to keep orderly files of Duty-Free Zone Customs Declarations and supporting 
documentation, the Operations Control Regi ster and the annual report on activities, or 
to keep updated electronic records of these documents, as appropriate, in accordance 
with Article 30(b) of the General Customs Law; 
  (l) to record and log in specific books and records, either manual or electronic, using the 
formats approved by PROCOMER, the operati ons of the enterprise relating to goods 
qualifying for tax exemptions authorized by the Directorate-General of Finance of the 
Ministry of Finance.  These books and records shall be subject to inspection by 
PROCOMER and the tax authorities; 
  (m) to make proper use of the vehicles and transport units entered under the terms of the 
Regime and to comply with the provisions  established by these Regulations in this 
connection; 
  (n) to meet other obligations as laid dow n in Law No. 7210 and amendments thereto, 
these Regulations, other relevant laws and regulations, the resolution granting 
Regime status and the operating contract. 
 Article 63.- Additional obligations of park management enterprises 
 
 In addition, the following obligations sha ll apply to park management enterprises: 
  (a) To notify the competent Customs Cont rol Office and PROCOMER of the occurrence 
of any change of premises, leasing of ne w warehouses or any non-routine movement 
of enterprises based in the park; 
  (b) to keep an updated record of  enterprises installed in the park; 
  (c) in the event of suspension of benefits or  suspension of the status of Customs Service 
Auxiliary enjoyed by beneficiary enterprises based in the park, it shall prevent the 
exit of any merchandise without prior authorization from COMEX or the Customs Control Office, whichever applies.  In both cases, these bodies shall inform the park 
management enterprise of the suspension ordered; 
 
 (d) to enforce circulars is sued by the Directorate in terms of their responsibility as 
Custom Service Auxiliaries; 
  (e) immediately to notify the customs stati on, the Directorate, and PROCOMER of any 
cessation of operations by an enterprise based in the park; 
 
 (f) to equip the customs station with the telephone lines required for its communications; 
  (g) to equip the customs station with the furniture, fixtures and services required for its 
satisfactory operation; 
 
 (h) to provide a security force for the park , to ensure the safety of goods and persons 
within the park, and to monitor complian ce with requirements regarding the entry, 
presence and exit of persons, vehicles and merchandise, and to ensure its proper 
functioning; 
 G/SCM/N/186/CRI 
G/SCM/N/192/CRI Page 44 
 
 
   (i) as of the commencement of operations, to put in place general regulations on the 
operation of the park, including provisions on the obligations of the park management 
enterprise, the obligations of  enterprises located in the pa rk, procedures applicable to 
control of entry and exit of material s and merchandise, persons, vehicles and 
transport units, control of services provided by the park and other regulations to be 
complied with by the park in accordance w ith the legislation in force.  These 
regulations shall be notified to users and shall be displayed in a prominent location 
within the park;  in addition, they sh all be made available to PROCOMER, the 
Directorate and the Customs Control Office when required.  The park management 
enterprise shall conduct training activities targ eted at beneficiary enterprises based in 
the park and the security guards on the provi sions in the regulations and shall ensure 
proper compliance therewith; 
  (j) to maintain access to the pa rk and its roads in good condition; 
 
 (k) to implement the project strictly in accordance with the resolution granting Regime 
status; 
  (l) to provide services in an efficient manner to the beneficiaries based in the park.  For 
this purpose, a survey of satisfaction with the services provided to beneficiary 
enterprises based in the park shall be c onducted annually and sha ll be forwarded to 
PROCOMER, together with the annual report; 
  (m) to supervise correct application of the Laws and regulations relating to the 
administration and operation of the park; 
 
 (n) to designate a place where employees can receive training, hold meetings and 
assemblies and ensure that it is maintained in good condition; 
  (ñ) to comply with the provisions of othe r relevant Laws and re gulations, and with any 
instructions issued by PROCOMER and the Directorate in their areas of competence. 
 
Article 64.- Monitoring procedures 
 
 The relevant agencies of the Ministry of Fi nance shall lay down th e monitoring and customs 
procedures to be followed by Regime beneficiar y enterprises and the Customs authorities, and the 
aspects relevant thereto shall be coordinated by  the Directorate in conjunction with PROCOMER. 
 
Article 65.- Guarantee deposit 
 
 As part of the deed of notification of the r esolution granting Regime status, beneficiaries shall 
lodge a guarantee deposit in favour of PROCOMER for an amount equal to three months of the fees 
payable for the use of the Regime, subject in all cases to a minimum of five thousand United States 
dollars.  If the amount of the fee paid by the ente rprise is increased to an amount higher than the 
amount of the guarantee deposit, the latter shal l be adjusted.  This guarantee shall provide 
unconditional assurance of correct performance of ea ch and every one of the obligations incumbent 
on the beneficiaries.  The guarantee may be returned in any of the ways set down in the Regulations 
implementing the Administrative Contracts Law. 
  PROCOMER shall be entitled to enforce the said  guarantee by an administrative procedure, 
without any formalities other than adoption of a d ecision with statement of grounds, and without any  G/SCM/N/186/CRI 
 G/SCM/N/192/CRI 
 Page 45 
 
 
  liability on its part, and to deduct from the sum in question any amounts owed to it by beneficiaries in 
any context.  The operating contract shall include  a clause expressly providing for this possibility. 
  It is understood that the guarantee referred to in this Article shall remain in force as an 
unconditional undertaking for the whole of the peri od for which the beneficiary remains covered 
under the Regime.  If the beneficiary fails to lodge  or replace the guarantee for any reason in the 
required manner within the specified deadline, or  within the compliance deadline specified by 
PROCOMER where applicable, PROCOMER shall i mmediately notify COMEX, for initiation of the 
administrative procedure for revocation of Regime st atus.  After the expiry of the said deadline, under 
no circumstances will any new deadline be gran ted for compliance with this obligation. 
 
Article 66.- Commencement of activities 
 
 Regime beneficiaries shall commence their ac tivities no later than the date stated in the 
relevant resolution granting Regime status.  PROC OMER may grant extensions to the deadline for 
commencement of activities, following a substantiate d request from the enterprise to this effect, 
provided that the date of commencement of producti on operations is no later than two years from the 
publication of the resolution granting Regime status.   In setting the date for commencement of ac tivities and extensions of the deadline, 
consideration shall be given to the details provided by the applicant in its application, the nature of the 
activity to be carried out, and the time required to generate an income from the activity;  accordingly 
the characteristics of each specific project shall be taken into account.   If the enterprise commences production activities before the deadline set in the relevant 
resolution granting Regime status, it shall notify the Operations Management Unit accordingly prior 
to the end of the financial period during which it commenced operations, providing documentation 
substantiating such commencement.  After th e corresponding technical examination has been 
concluded and where appropriate, within five  working days, PROCOMER shall notify the 
Directorate, the Customs Control Office, the Directorate-General of Taxation and COMEX of the date of commencement of operations so that it can be registered. 
 
Article 67.- Annual report on activities 
 
 Within the four months following the end of  the normal financial year, or a non-standard 
financial year as authorized by the Ministry of Fi nance for a specific enterp rise, beneficiaries shall 
provide PROCOMER with an annual report on their ac tivities during the financial year that has just 
finished, containing and providing the information specified in the form drawn up for this purpose by PROCOMER and duly published in the official journal, La Gaceta . 
  If the report is not submitted or is submitted in an incomplete form, PROCOMER shall give 
the beneficiary a deadline of 15 working days, calculated from the working day following the 
notification to this effect, in which to submit th e annual report, remedy the defects or submit the 
missing documents, whichever applies.  If the report is  not submitted or the defects not remedied or 
the missing documents not submitted during the af orementioned period, PROCOMER shall issue a 
final warning giving ten working days calculated from the date of the notification in which to comply. 
 
 If the report is not submitted within the dead line set down in the first and second paragraphs 
of this Article, or if it is found that the report h as been submitted with substantive defects or omissions 
and these are not remedied within the deadline sp ecified by PROCOMER in accordance with the 
second paragraph of this Article, PROCOMER shall temporarily suspend the enterprise in breach 
from performance of any authorized actions regard ing activities covered by the Regime, and make G/SCM/N/186/CRI 
G/SCM/N/192/CRI Page 46 
 
 
  notification accordingly, on the same day the relevant official letter is sent, to the Directorate-General 
of Customs, the competent Customs Control Offi ce, the Directorate-General of Finance and the 
management of the industrial park where the en terprise is located, to ensure the concomitant 
suspension of all Regime transactions and benefits, such as the transit or movement of materials and 
merchandise, exemptions and ot her operations under the Regime. 
  All of the above shall be without prejudice to any penalties that may become applicable 
pursuant to the Law, and on the b asis of a recommendation, with supporting arguments, forwarded to 
COMEX by PROCOMER. 
 
 PROCOMER shall forward a copy of the annual report to the Central Bank of Costa Rica for 
the purpose of compiling the relevant statistics.  
Article 68.- Non-payment of the fee for use of the Regime 
 
 In cases where a beneficiary is in arrears with  payment of its mandatory legal contributions 
for use of the Regime by 15 calendar days, PROCOMER shall bring this to its attention.  If the default 
period is in excess of 30 calendar days, PROCOMER shall advise COMEX so that the administrative 
procedure for imposition of the relevant penalti es can be initiated and all transactions with 
PROCOMER shall be automatically suspended, as a precautionary measure, until such time as the 
beneficiary is again up to date with  payment of the said contribution. 
  If the default period is 60 calendar days or more, PROCOMER may deduct from the 
guarantee deposit the amount corresponding to the ma ndatory legal contributions due.  The foregoing 
shall without prejudice to the beneficiary enterpri se's obligation to comply with the provision in 
Article 62(f) of these Regulations.  If the deposit gua rantee balance is not sufficient to recover the 
mandatory legal contributions, all benefits under the Regime shall be  automatically suspended, as a 
precautionary measure, together with charges for using the Regime.  PROCOMER shall immediately 
notify this situation to COMEX, the Dir ectorate, and the Customs Control Office. 
  When the beneficiary enterprise is again up to date with payment of the said contribution, the 
precautionary suspension indicated shall be lifte d and this shall be notified to COMEX, the 
Directorate, and the Customs Control Office.  
CHAPTER XI 
Special provisions on incentives 
 
Article 69.- Enterprises or investment projects that have already received incentives 
 
 Regime status shall not be granted for th e development or operation of enterprises or 
investment projects that have already received in centives under the Regime, even if this was under the 
name of a different natural or legal person, unless it can be demonstrated that the activity is a new 
project, or, in exceptional cases, where in the opinion of COMEX this is justified by the nature of the 
project or the magnitude of the additional investment involved.   In assessing the criteria set down in this Article, the Ministry may consider all criteria allowing it to establish whether the enterprises or projects seeking admission to the Regime have 
previously received Regime incentives, or to establish whether the proposal involves new or 
exceptional projects that may be admitted on the basis of their nature, or the magnitude of the investment involved.   G/SCM/N/186/CRI 
 G/SCM/N/192/CRI 
 Page 47 
 
 
   In assessing whether the venture is a new project, consideration shall be given to the location, 
the production process, the goods or services produced, and other similar criteria.  In addition, for 
both additional investments and new projects, the pa rty shall at least meet the minimum initial new 
investment requirements laid down in Chapter II of these Regulations. 
 
Article 70.- Reinvestment 
 
 Export processing enterprises covered by the Re gime whose initial new investment in fixed 
assets has been greater than or equal to two milli on United States dollars (U S$2,000,000.00) or the 
equivalent in local currency, and which, on comple tion of four years since gaining Regime status, 
reinvest in the country shall be entitled to an a dditional exemption from payment of income tax, under 
the terms and conditions laid down in Article 20( l) of Law No. 7210 and amendments thereto. 
  For the purposes of determining and quantifying the minimum initial investment, 
reinvestment and the additional exemption,  the following rules shall be applied: 
  (a) Eligibility for this additional exemption is restricted to enterprises that have made an 
initial new investment in fixed assets under the Regime of at least two million United States dollars (US$2,000,000.00).  The assessment of the amount of this initial 
new investment in fixed assets shall be b ased on the same criteria as those laid down 
in Articles 6 and 8 of these Regulations.  In  addition, the initial investment in this 
context shall also be deemed to include investments made during the first two years of application of the Regime, i.e. the two years following the date on which the resolution granting Regime status was sent to the enterprise in question; 
 
 (b) the enterprise must have made the rei nvestment after the expiry of four years from 
being granted Regime status, and before the start of the eighth year after being granted Regime status.  For this purpose, years shall be calculated as annual periods from the date on which the resolution gr anting Regime status was sent to the 
enterprise; 
 
 (c) the reinvestment must meet the require ments for new investments in fixed assets, in 
accordance with the criteria laid down in Articles 6 and 8 of these Regulations; 
  (d) the reinvestment percentage require d under Article 20(l) of Law No. 7210 and 
amendments thereto in order to qualify fo r each additional year of exemption from 
75 per cent of tax on profits for up to a maximu m of four years, shall be calculated on 
the basis of the total investment in fixe d assets, established in the resolution granting 
Regime status, as of the day of the expiry  of four years from being granted Regime 
status, or on the amount of two million Unite d States dollars (US$2,000,000.00) laid 
down in Article 20(l) of Law No. 7210 and amendments thereto, whichever is the 
larger; 
 
 (e) each year of exemption from 75 per cent of tax on profits, for up to a maximum of 
four years, shall be calculated from the end of the last year in which the enterprise was entitled to exemption from 100 per cent of tax on profits.  For this purpose, years 
shall be calculated as annual periods from the date on which the enterprise first 
became entitled to the exemption from 100 per cent of tax on profits; 
  (f) after expiry of the year or years of additional exemption from 75 per cent of tax on 
the enterprise's profits, within the maximu m of four years pursuant to Law No. 7210 
and amendments thereto, the enterprise sh all be entitled to continue with exemption G/SCM/N/186/CRI 
G/SCM/N/192/CRI Page 48 
 
 
  from 50 per cent of tax on profits, up to the e xpiry of the period for that exemption in 
accordance with Law No. 7210 and amendments thereto; 
  (g) to qualify for the additional exemption from 75 per cent of tax on the profits laid 
down in Article 20(l) of Law No. 7210 and amendments thereto and the 
implementing provisions contained in this  Article, the enterprise shall make an 
application in writing to PROCOMER within  three calendar months from the date by 
which it was required to make its additional re investments, i.e. the date of expiry of 
seven years since the dispatch of the resolution granting Regime status.  The 
application shall be subm itted on the form to be drawn up for this purpose by 
PROCOMER, accompanied by the documentation specified on the form, the purpose of which is to verify the amount, char acteristics and dates of both the initial 
investment and the additional reinvestment s, in order to determine whether the 
requirements and conditions laid down in Law No. 7210 and amendments thereto and 
in these Regulations have been met.  If th e application is not submitted by the due 
date, the application shall be rejected; 
  (h) PROCOMER shall examine the appli cation submitted and forward a report to 
COMEX, following the procedure set down in Chapter III of these Regulations, as applicable.  If the Executive grants the a dditional exemption referred to in this 
Article, this shall be recorded as an am endment to the resolution granting Regime 
status.  Executive Resolutions rejecting an application for an additional exemption in 
accordance with this Article are subject to a ppeal for review pursuant to the Code of 
Administrative Litigation Procedures. 
 Article 71.- Trading activities 
 
 Enterprises engaged in trading activities which operate under the Regime are not eligible for 
the benefits referred to in Article 20(f) and (g) of Law No. 7210 and amendments thereto. 
  Where a processing or services enterprise, or an enterprise in any category other than that of 
trading enterprise, carries out activities as re ferred to in Article 17(b) of Law No. 7210 and 
amendments thereto, the profits generated from sales  as a trading company shall be subject to income 
tax.  The assessment of the portion of profits on whic h tax is payable shall be based on the ratio of the 
enterprise's sales revenue from its trading activity to its total sales revenue.  In any event, the 
performance of trading activities by businesses not classified as trading enterprises as from their 
admission to the Regime may only be of a complement ary nature, and shall be subject in all cases to 
prior authorization from PROCOMER and notification to the Ministry of Finance.  The performance 
of trading activities of a complementary nature by an enterprise in any of the categories referred to in 
Article 17(a), (c), (ch) and (e) of Law No. 7210 and amendments thereto shall not lead to the 
enterprise being recognized as belonging to the category under subparagraph (b) of the said Article 17. 
 
 On receipt of the application, PROCOMER shall examine it carefully from the technical point of view and determine whether the activity propo sed by the applicant is complementary to its 
principal activity which has already been authorized , and shall issue or deny authorization within a 
maximum deadline of ten working days from the date the application is received.  If PROCOMER has 
to request further information from the applicant, the time-limit shall be calculated from the date of 
receipt of the additional information.  The provisions  of Chapter III of these Regulations shall apply in 
such cases, wherever applicable.   G/SCM/N/186/CRI 
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   The term "complementary" in this context sh all be understood as referring to trading activities 
which do not generate more than 30 per cent of the "total sales of the enterprise".  
Article 72. - Calculation of the tax on profits 
 
 It shall be the responsibility of the Directorate- General of Taxation of the Ministry of Finance 
to lay down the requirements, obligations, standard s and other procedural and monitoring mechanisms 
applicable to enterprises covered by the exemp tion from tax on profits laid down in Law No. 7210 
and amendments thereto. 
 
 If a change in the percentage of the exempti on entitlement of a Regime beneficiary (100 per 
cent, 75 per cent, 50 per cent or 0 per cent) occurs in the course of a financial year for tax on profits 
(either the normal financial year or non-standard financial year as authorized by the Directorate-General of Taxation of the Ministry of  Finance), to calculate the tax payable for the 
period in question the enterprise shall proceed as follows:  take the profit figure from the annual 
financial statements for the respective segments of the financial year for which each exemption 
percentage applied, and calculate the tax payabl e on those amounts, allowing for the exemption 
percentage in each case.  The total payable will th en be the sum total of the amounts so obtained. 
 
Article 73.- Restrictions on the application of exemptions under Article 20(g) of the Law 
 
 The restriction referred to in the fifth paragr aph of Article 20(g) of the Law shall only and 
exclusively apply when all of th e circumstances listed below occur: 
  (a) The country of origin of the potential beneficiary taxes the profits earned in 
Costa Rica by the enterprise benefiting from th e Regime and at the same time allows 
a credit or deduction to be made on the tax payable in the country of origin on the said profits; 
  (b) the credit or deduction shall be calculated on the basis of the tax exempt in 
Costa Rica, namely, the amount corres ponding to the tax which the Regime 
beneficiary enterprise should have paid in  Costa Rica if the exemptions allowed by 
Article 20(g) of Law No. 7210 and amendm ents thereto had not been applied. 
  The restriction shall not apply if in the country of origin of the potential beneficiary the profits generated in Costa Rica by the beneficiary enterprise are not taxed. 
 
 In order to prove that the aforementioned restri ction does not apply, the enterprise shall attach 
to the application for admission to the Regime a sworn statement certifying that in the country of origin of the potential beneficiaries the taxes exempt  in Costa Rica may not be deducted, in the terms 
laid down in subparagraphs (a) and (b) of this Article.  This stat ement shall be updated annually in the 
context of the annual report on activities. 
 
 PROCOMER shall forward the said sworn statemen t to the Ministry of Finance so that the 
relevant checks may be made.  In exercise of its competence for taxation, the Ministry of Finance may 
request the beneficiary to provide certification from th e Tax Administration of the country of origin of 
the potential beneficiary(ies) proving that the taxes exempt in Costa Rica in the terms laid down in 
this Article may be deducted in the country concerned. 
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  CHAPTER XII 
Purchases and sales on the local market 
 
Article 74.- Sales from the local market 
 
 Sales of materials, merchandise or services made by natural or legal pe rsons domiciled within 
the national customs territory to benefi ciaries shall be regarded as exports. 
 
Article 75.- Purchases in the local market 
 
 Pursuant to the provisions of Law No. 7210 a nd amendments thereto, authority is hereby 
given for an exemption from payment of General Sales Tax and Selective Consumption Tax on local 
purchases made by Regime beneficiaries in the following cases:  
 (a) Local purchases of materials and mercha ndise referred to in Article 4 of these 
Regulations; 
  (b) purchases of the use of public and private services required for;  
1. the generation of operating, prod uction, administrative and transport 
capacity; 
 
2. staff training or associated purposes, i.e. transport, accommodation, meals; 
 
3. the cost of transport and accomm odation incurred by the enterprise and 
connected with the activities authorized  by the Executive Resolution granting 
Regime status; 
 
4. meal services contracted by the beneficiary enterprise; 
  (c) in exceptional cases, any other items as  specified by the Ministry of Finance by 
resolution with supporting arguments. 
 
Article 76 .- Substantiation of local purchases 
 
 The transactions carried out under the provisions of the preceding Article need not be 
accompanied by a Duty-Free Customs Declarati on for each such purchase.  The arrangements 
whereby General Sales Tax and Selective Consumpt ion Tax are not payable shall be based on valid 
supporting documents issued by the domestic s upplier enterprise and by the purchase order or 
equivalent document duly issued by the Regime beneficiary.   Enterprises in duty-free zones shall submit with  their annual report on activities a copy of the 
relevant form issued by the Directorate-General of Taxation, showing the annual declaration of 
clients, suppliers, and specific costs and their respective details.   The beneficiary enterprise shall retain the local purchase documents and information during 
the period stipulated by the Code of Tax Rules and Procedures. 
 
 The documentary basis required for transit of  merchandise from the national customs territory 
shall be the commercial invoice and purchase order, or equivalent document.   G/SCM/N/186/CRI 
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   Without prejudice to the information required by PROCOMER, duty-free zone enterprises 
shall submit to the Directorate-General of Taxation,  in accordance with the procedures, time-periods 
and requirements established by the latter, informat ion of tax-related significance arising from their 
economic, financial and professional relations with other persons. 
 
Article 77.- Sworn statement on General Sales Tax 
 
 For the purpose of preparing the sworn stat ement on General Sales Tax (form D-104), the 
domestic supplier shall report sales made to Regime  beneficiary enterprises in the box corresponding 
to export sales so that they do not form part of the tax base. 
  In addition to the information in its sales r ecords as required under the legislation on General 
Sales Tax, the domestic supplier shall also provide  the number of the purchase order or equivalent 
document issued by the duty-free zone enterprise and the date of the document, in cases where its 
customer was an enterprise covered by the Duty-Free Zone Regime. 
 
Article 78.- Movements of merchandise fr om the national customs territory 
 
 The documentary basis for movements of me rchandise from the national customs territory 
shall be the commercial invoice and purchase order, or  document equivalent to a purchase order in the 
case of minor purchases, in accordance with the pr ovisions of Article 76 of these Regulations. 
 
Article 79.- Documentary basis for the sa le of services, materials and merchandise 
 
 As the documentary basis for a sale to a Regi me beneficiary, a domestic supplier of services, 
materials and merchandise shall be required to prov ide the purchase order or equivalent document, as 
laid down in Article 76 of these Regulations.  The supplier shall keep copies of invoices to duty-free 
zone enterprises with the "received as specifi ed" endorsement in the correct order. 
  The sales invoice of the domestic supplier sh all show, in addition to  the usual details, the 
number and date of the beneficiary's pur chase order or the equivalent document. 
 
Article 80.- Improper use of exempted  materials, merchandise or services 
 
 The improper use of exempted materials, merc handise or services shall be sufficient cause for 
the Ministry of Finance to proceed to collect the ta xes not paid and to initiate the actions laid down in 
current legislation for that purpose. 
  Duty-free zone enterprises shall provide the Di rectorate-General of Taxation, in accordance 
with the procedures, time-periods and requirement s established by the latter, information of 
tax-related significance arising from their economic, financial and professional relations with other 
persons, adjusting it to match th e normal financial period established for the provision of such 
information, independently of the financial peri od authorized for the income-tax declaration. 
 G/SCM/N/186/CRI 
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  CHAPTER XIII 
Sales into the national customs territory 
 
Article 81.- Procedures for sales to the local market 
 
 Regime beneficiary enterprises may make sales in the national customs territory under the 
terms and conditions set down in Article 22 of Law No. 7210 and amendments thereto, and subject to 
the taxes and procedures applicable to any import from abroad.  
 For the purposes of exit of merchandise from the Regime and for its import, the beneficiary 
enterprise shall submit or forward the customs declar ation in accordance with th e procedures in force.  
In the case of services en terprises, a commercial invoice shall be provided for each sale into the local 
market, using any of the means permitted by the legisl ation in force, to serve as the documentary basis 
for the transaction for tax, customs and statistical purposes;  a copy of this invoice shall be sent to 
PROCOMER.  In the case of services involving the use of materials and merchandise (e.g. spare 
parts), a breakdown of these shall be provided on a separate invoice, and the appropriate customs 
declaration shall be submitted or forwarded.  The 25 per cent or 50 per cent limits, as applicable, 
pursuant to the said Article 22 of Law No. 7210, shall be calculated on the value of total sales, and shall be applied in each financial year to Regime  beneficiary enterprises which make domestic sales. 
 Article 82.- Sales projection report 
 
 Before making such sales, the beneficiary enterprise shall forward to PROCOMER a breakdown of the projected sales for the period in question, on the form drawn up for this purpose.  Article 83.- Rules applicable to  sales to the local market 
 
 Where Regime beneficiary enterprises sell goods and/or services in the national customs 
territory, as referred to in the preceding Article, the pe rcentage of the exemption applied to imports of 
machinery, equipment and raw materials, and the percentage of the exemption from tax on profits, 
shall be reduced on a pro-rata basis according to  the ratio of goods and services brought in to the 
national customs territory to the total value of the en terprise's sales of goods and services.  In the case 
of the exemption from tax on profits, the reduction sha ll be made for each releva nt financial period.  
In the case of the tax exemption applied to equipm ent and machinery, the reduction shall be made 
once only and on the basis of the financial period in which local sales were initiated.  
 Taxes payable on machinery and equipment used  to produce goods and services sold locally 
shall be assessed by the enterprise itself and subm itted to the competent Customs Control Office no 
later than five months after the end of the ordinary  financial period or the sp ecial financial period duly 
authorized for the enterprise by the Directorate-Ge neral of Taxation.  In the case of machinery and 
equipment which the enterprise brings in to the Regime subsequently for use in production processes 
for local sales, the percentage of taxes payable sh all be settled in the relevant financial period. 
 
 When the enterprise's sales to the local market amount to a hi gher percentage than that for 
previous periods and, as a result, the percentage or iginally paid on machinery and equipment is lower 
than the current percentage of  local sales, the enterprise it self shall assess and pay the tax 
corresponding to such difference. 
 
 For the purposes of compliance with the provisions  of the last paragraph of Article 22 of Law 
No. 7210 and the amendments thereto, the taxes a nd customs procedures applying to any like imports 
from abroad shall apply to goods and services that are brought in to the domestic market.  Such taxes shall be paid upon entry into the national customs territory.  G/SCM/N/186/CRI 
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 The proportion of goods and services brought in  to the national customs territory shall be 
calculated according to the following formula:  
 DS (Domestic Sales) VALUE x 100 = Percentage of Domestic Sales 
 TS (Total Sales) VALUE  The tax payable on machinery, equipment and raw materials shall be calculated as follows:  TT (Total Tax) x per cent Domestic Sales = Tax Payable.  
 In addition to the foregoing, the following rules shall apply in assessing the amount of tax 
payable on machinery, equipment and raw materials used by the enterprise in the production process 
for goods and services cleared through custom s in to the national customs territory: 
  (a) The Regime beneficiary shall provide the competent Customs Control Office with a 
certificate for the machinery, equipment and raw materials used in the production 
process for the end products and/or services for local sale, with an indication of the book value of the goods, issued by a co mpetent professional and showing the number 
of the Duty-Free Zone Customs Declarati ons under which they entered the country.  
In the case of service enterprises, the certif icates shall be issued, likewise by a 
competent professional, on the basis of the commercial invoices covering the sales.  
They shall also give details of any merchandise used in the service, where this is 
required, and the cost of the service; 
 
For the purposes of determining the va lue of the goods, the corresponding 
percentages of depreciation according to the Table of Depreciation Methods and 
Percentages contained in the Regulations implementing the Income Tax Law shall be 
used; 
  (b) PROCOMER shall provide the competent Customs Control Office with a projection 
of total sales and local sales, submitted by  the enterprise for the relevant financial 
period, expressed in FOB values in Central American pesos, so  that the Customs 
office may set up the required monitoring arrangements.  On the basis of the 
information submitted by the beneficiary en terprise in the annual report on activities, 
at the end of the financial period PROC OMER shall submit to the competent 
Customs Control Office, within five months following the end of the ordinary financial period or, where applicable the special financial period authorized for a 
specific enterprise by the Directorate-Genera l of Taxation, the final amount in colons 
of the total and local sales made by the be neficiary, and the percentage of the sales 
made on the local market, for the purpo ses of self-assessment of the corresponding 
taxes.  The foregoing shall be without prejudice to the jurisdictions established in Article 12 of Law, No. 7210, and amendments thereto; 
 
 (c) the customs value of the goods shall be set in accordance with the customs valuation 
procedures in force at the time of acc eptance of the customs declaration; 
  (d) liability for taxation shall be governed by  the provisions of Article 55 of the General 
Customs Law; 
 
 (e) the self-assessment and payment of the taxes shall be governed by the relevant 
provisions of the final importation procedure in force; 
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   (f) in the case of locally purchased raw materi als which have been incorporated in the 
end product, payment of Selective Consump tion Tax, Sales Tax and taxes on profits 
shall be based on the procedure laid down fo r this purpose by the Directorate-General 
of Taxation. 
 
CHAPTER XIV 
Subcontracting 
 
Article 84.- Percentage of subcontracting 
 
 Beneficiaries admitted to the Regime in acco rdance with Article 17(a) of Law No. 7210 and 
amendments thereto may subcontract a portion of  their production or pr oduction process to any 
beneficiaries of the Regime or to any natural or  legal person established within the national customs 
territory, provided that at least 50 per cent of th e total production volume of the enterprise covered by 
the Regime is produced by the subcontractor. 
 
Article 85.- Application for subcontracting 
 
 Beneficiaries wishing to form subcontracting arrangements shall submit an application to 
PROCOMER using the form or electroni c archive set up for this purpose. 
 
Article 86.- Authorization to subcontract 
 
 The Administration of PROCOMER shall aut horize the subcontracting arrangement within 
three working days of submission of the application. 
 
Article 87.- Period for subcontracting 
 
 The permitted period for subcontracting shall be set by PROCOMER according to the needs 
of the party concerned, and may be extended if PROCOMER considers that the reasons for granting 
the authorization still apply. 
 
Article 88.- Guarantees and time-limit for th e merchandise's stay in the facilities of the 
subcontracted enterprise 
 
 Beneficiary enterprises may temporarily clear machinery and equipment to be used 
exclusively in the subcontracting arrangement throu gh customs into the national customs territory.  A 
customs lien with the Customs authority shall be es tablished for this purpose.  The foregoing shall be 
without prejudice to the privilege of customs lien established in Article 71 of the General Customs 
Law and amendments thereto.  In addition, the subc ontracting arrangement shall be subject to customs 
monitoring and supervision, as set down in th e General Customs Law and its implementing 
regulations.  In such cases, the merchandise sha ll remain covered by the Regime and under the 
responsibility of the beneficiary enterprise. 
  The Regime beneficiary enterprise may transf er the raw materials and merchandise involved 
in the subcontracting arrangement.  In such cases,  no guarantee has to be  deposited, although the 
materials and merchandise forming the subject of a subcontracting arrangement may not remain for 
more than six months outside the Regime beneficiar y enterprise.  This period shall be calculated from 
the time at which the customs transit of the materials and merchandise forming the subject of the subcontracting arrangement is authorized.   G/SCM/N/186/CRI 
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   If the production process so requires, the be neficiary enterprise may subcontract, under the 
same subcontracting arrangement, to  several enterprises at once.  For this purpose, the beneficiary 
enterprise shall include details of the subcontract ed enterprises in the Duty-Free Zone Customs 
Declaration. 
 
 The subcontracted enterprise may not use the goods entered under the Regime for purposes 
other than those envisaged in the authorized s ubcontracting arrangement, so that the merchandise 
produced as a result of the service provided may only be exported or sold in the national territory by 
the subcontracting enterprise. 
 
Article 89.- Responsibility for merchandise forming the subject of the subcontracting 
arrangement 
 
 As the beneficiary, in its capacity as Customs Service Auxiliary, is directly responsible for 
goods entering under the Regime, it shall ensure th e correct use and finality of the goods forming the 
subject of the subcontracting arrangement and comp liance with the time-limit on their stay in the 
installations of the subcontracted enterprise.   To this end, it shall apply all the appropriate controls and keep up to date the registers in 
which the exit and return of the goods is recorded , so that the Customs authority can, on request, 
obtain access to information on the use and finality of the merchandise. 
  The beneficiary shall be liable for payment of  any customs or tax obligations arising from 
failure to comply with the terms and conditions of subcontracting arrangements, in accordance with 
the legal and other provisions governing the matter, without prejudice to the penalties determined in 
the General Customs Law. 
  The subcontracting arrangement shall be subj ect to the customs supervision and control 
provided for in the General Customs Law and its implementing Regulations, as well as other related 
rules issued by the Directorate.  Article 90.- Report on subcontracting 
 
 The subcontracting enterprise shall present, in  the annual report, a breakdown of the results 
produced by that date under the subcontracting arra ngement, in the format specified by PROCOMER, 
which shall include a sworn statement submitted by the legal representative that the materials and 
merchandise were returned to the subcontracting ente rprise within the specified period of six months. 
 
Article 91.- Effect of failure to submit a report on subcontracting 
 
 If the subcontracting beneficiary enterprise fa ils to submit the report referred to in the 
preceding Article, or has failed to comply w ith the terms and conditions under which the 
subcontracting arrangement was authorized, PROC OMER may revoke the authorization, and shall 
notify COMEX for initiation of the appropriate procedure.   For the purpose of enabling the Customs authorit y to exercise the relevant supervision over 
the merchandise that is the subject of th e subcontracting arrangement, PROCOMER shall 
immediately notify the Customs Control Office of th e beneficiary enterprise's failure to comply. 
 G/SCM/N/186/CRI 
G/SCM/N/192/CRI Page 56 
 
 
  Article 92.- Registration of subcontractors 
 
 Enterprises wishing to be subcontracted by beneficiary enterprises shall register with 
PROCOMER by completing the appropriate form.  When registering they shall: 
 
(a) Describe the activity; 
  (b) provide a sworn statement attesting to th e existence of up-to-date inventories of raw 
materials, products being processed and finished products; 
 
 (c) show that they are up to date with their tax obligations by providing a sworn 
statement; 
  (d) make available to the authorities of the Mi nistry of Finance, in the exercise of their 
powers relating to merchandise under customs control, any information or 
documentation requested concerning the use and finality of the merchandise forming 
the subject of the subcontracting arrangement , and allow the authorities to verify the 
circumstances if they consider it appropriate. 
  PROCOMER shall transmit the list of register ed enterprises to the Directorate and to the 
Customs Control Office by appropriate means. 
 
Article 93.- Inward customs clearance a nd re-export by subcontracted enterprises 
 
 Regime beneficiary enterprises which subcontr act with other beneficiaries under the Regime 
or with any natural or legal pers on established within national custom s territory may clear or re-export 
their merchandise to and from the installations of the subcontracted enterprise.   For this purpose, the subcontracting ente rprise shall forward the respective customs 
declarations to the Customs Control Office, indi cating the name and location of the subcontracted 
enterprise and that the merchandise will be importe d into or exported from these installations.  In 
addition, for all purposes, it shall be responsible fo r complying with and ensuring proper application 
of the relevant rules and procedures.  For this purpose, it shall be directly responsible for the 
communications established which, inter alia , permit the supervision and monitoring of entry, exit, 
transfer and registration in the inventory of th e merchandise.  The foregoing shall be in close 
coordination with the subcontracted enterprise. 
 
 In order to enable the beneficiary enterprises to clear or re-export merchandise from the installations of the subcontracted enterprise, using the means established, they shall notify 
PROCOMER, their Customs Control Office and that of the subcontracted enterprise in advance, 
indicating the following:  
 (a) The name of the subcontracted enterprise; 
  (b) the location of the installations of the subcontracted enterprise and its Customs 
Control Office; 
 
 (c) an indication that henceforward the merchandise that is the subject of the 
subcontracting arrangement w ill be exported from the aforementioned installations. 
  If the beneficiary enterprise takes any action that fails to comply with the foregoing 
provisions, the Customs authority shall initiate the applicable penalty procedures.  G/SCM/N/186/CRI 
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CHAPTER XV 
Procedures applicable to the in ward customs clearance, transit 
or movement of materials and merchandise 
 
Article 94.- Procedures for controlling th e transit or movement of merchandise 
 
 The procedures for controlling the transit or movement of merchandise to or from a duty-free zone, including exit, routing, r eception, unloading and completion of transit formalities, shall be 
governed by the provisions contained in the Gene ral Customs Law and its implementing Regulations 
and by the related procedures and guidelines issued by the Directorate.  In the case of inward customs 
clearance of materials and merchandise, the appli cable customs rules on the definitive import regime 
shall also apply.  Article 95.- Merchandise regularly shipped 
 
 Merchandise regularly shipped between bene ficiary enterprises under the Regime and the 
Inward Processing Regime the nature of which implie s an ongoing process that is difficult to separate 
out in detail and quantify at a given point in time,  may be recorded together on a single Duty-Free 
Zone Customs Declaration, together w ith the operations conducted each month. 
 
 In order to make use of the customs declar ation in the terms indicated in the preceding 
paragraph, the beneficiary shall simply no tify the Customs Control Office in advance. 
 
Article 96.- Customs transit and movement 
 
 Beneficiary enterprises which have entered vehi cles or transport units under the Regime that 
comply with the technical and safety conditions laid down in the General Customs Law and its 
implementing Regulations, with respect to customs transit, may declare and carry out with those vehicles internal customs transit and movement of  materials, merchandise, machinery and equipment 
connected with the activities of  the beneficiary enterprise. 
 
Article 97.- Repair, maintenance and rebuilding of transport units 
 
 Beneficiary enterprises whose authorized activ ities involve the repair, maintenance and/or 
rebuilding of transport units may enter these under the Duty-Free Zone Regime for the purpose of 
carrying out such procedures.  When  the transport units arrive in the port area, they shall be moved 
directly to the installations of the beneficiary en terprise under the Duty-Free Zone Regime.  After the 
relevant procedure has been completed and the exit  declaration under the Duty-Free Zone Regime has 
been processed, such units may opt for the Temporary Import Regime.  The time-limit under this Regime shall be calculated as of the date of acce ptance of the relevant customs declaration of 
temporary import. 
 
 If the transport unit is in national customs te rritory under the Temporary Import Regime and 
needs to undergo one of the aforementioned procedur es, it may be moved to the installations of the 
Duty-Free Zone Regime enterprise.  In such cas es, the time-limit for remaining under the Temporary 
Import Regime shall be suspended for the period duri ng which the units are in the installations of the 
beneficiary enterprise.  This period shall continue to be calculated from the time at which the customs 
declaration on exit of the units from the installati ons of the Duty-Free Zone Regime enterprise was 
issued.  G/SCM/N/186/CRI 
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   The beneficiary enterprise shall keep an i nventory of transport units entering under the 
Regime in each of the aforementioned circumstances.   If, in the course of exercising its supervisor y powers, the Customs authority determines that 
the transport units entered under the Regime for an y purpose other than tho se authorized by this 
Article, it shall initiate the correspondi ng regular and penalty procedures. 
 
Article 98.- Use of the Duty-Free Zone Customs Declaration 
  Any entry, movement or exit of materials or goods involving a customs transaction shall 
require completion of the Duty-Free Zone Customs Declaration, except for donations, destruction, 
purchase of services and movement of goods from th e principal plant to the secondary plant or 
warehouse if both are located within the same park.  The foregoing shall be without prejudice to the 
internal controls and adequate inventory records which the enterprise is required to maintain for 
monitoring purposes. 
  The customs seals supplied by PROCOMER sh all also be used, except in the case of 
temporary inward customs clearance operations, dona tions, subcontracting arra ngements, destruction, 
local purchases or movements or sales between en terprises located in the same park, and imports 
entering by sea or land provided that the transport unit has seals affixed by the supplier or 
international freight carrier.  The use of seals shall not be required for movement of materials and 
merchandise from the principal plant to the satellite  or secondary plant or warehouses located within 
the same park.  
Article 99.- Duty-Free Zone Customs Declaration forms 
 
 PROCOMER shall provide Duty-Free Zone Customs Declaration forms, which shall be numbered consecutively.  PROCOMER shall keep a register of forms supplied and used, and any 
forms spoiled by the beneficiary.  The foregoing shall be without prejudice to the electronic media 
that may be used for processing customs declarations.  
CHAPTER XVI 
Temporary inward customs clea rance and sales to enterprises 
covered by special export regimes 
 
Article 100.- Criteria for temporary inward customs clearance 
 
 Beneficiaries may carry out temporary inward  clearance into national customs territory for 
machinery, vehicles and equipment in provenance from duty-free zones where this is for the purpose 
of, repairing, maintaining or modifying the goods.  Such goods may also be subject to temporary 
inward clearance for trade fairs, staff training, company presentations or demonstrations, provided 
that the activity does not constitute manufacture forming part of the production process of the 
enterprise based in the duty-free zone.  The foregoing shall be subject to compliance with the 
stipulations set down in the third paragraph of Ar ticle 24 of Law No. 7210 and amendments thereto. 
 
Article 101.- Transmission of the Duty-Free Zone Customs Declaration 
  In such cases, the beneficiary shall forward th e relevant Duty-Free Zone Customs Declaration 
to the competent Customs Control Office, and subject the merchandise to inspection by the random check method.  The Customs Declaration shall indicate the period for which the materials and 
merchandise inward cleared into the national cust oms territory on a temporary basis will have to 
remain there.  G/SCM/N/186/CRI 
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Article 102.- Sales to beneficiaries of other special export regimes 
 
 Beneficiaries may make sales of any kind to na tural or legal persons that are beneficiaries of 
other special export regimes in accordance with the customs procedures laid down. 
 
Article 103.- Inward customs clearance of goods for production activities outside the area 
authorized as a duty-free zone 
  Where the resolution granting Regime status h as authorized production activities outside the 
area authorized as a duty-free zone, pursuant to Article 10.I(l) of these Regulations, the enterprise may obtain temporary inward clearance into national customs territory for the machinery, equipment, 
materials and merchandise indicated in the aforesaid resolution.  The temporary inward clearance may 
be for a maximum period of one year.  At the expiry of the said period, if the aforementioned goods 
have not been returned to the installations of the be neficiary enterprise, it sha ll pay the taxes, fines and 
interest of any kind corresponding to their import.   Whenever the beneficiary enterprises wishes to  obtain temporary inward clearance, it shall 
comply with the provisions of Article 101 of th ese Regulations and shall forward to the Customs 
Control Office a list showing details of the goods to  be cleared and indicating the period during which 
they will remain and the exact location of the goods in the national customs territory. 
  The enterprise shall keep an up- to-date record of the goods cleared, with their exact location.  
In exercise of its powers, the Directorate may at any time undertake an inspection in order to verify 
the proper use and finality of the goods, for wh ich it may request the aforementioned record. 
 
 Goods that have undergone inward clearance in to national customs territory shall be used 
exclusively for the activity authorized under the Re gime and failure to comply with this provision 
may lead to annulment of the authorization for temporary inward clearance of the goods covered by the resolution granting Regime status, without prejudi ce to other penalties applicable, as provided in 
Article 32 of Law No. 7210 and amendments thereto.  In such cases, the submission of the customs 
lien or guarantee shall not be requi red;  nevertheless, Regime beneficiaries shall be liable for any 
damage or loss affecting the goods cleared into na tional customs territory on a temporary basis and 
shall pay the relevant duties and taxes, except in th e case of destruction of the goods by act of God or 
force majeure , duly substantiated to the satisf action of the Customs authority. 
 Article 104.- Movement of laptop computers outside the duty-free zone 
 
 Beneficiary enterprises wishing to move laptop computers outside the area authorized as a duty-free zone in order to carry out work directly connected with the activity authorized under the Regime, shall verify and register the entry, exit, serial number of the asset and the name and 
identification of the person entitled to use the equipmen t.  Regime beneficiaries shall be liable for any 
damage or loss affecting the laptop computers, and shall pay the relevant duties and taxes, except in 
the case of destruction by act of God or force majeure , duly substantiated. 
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  CHAPTER XVII 
Deed of customs lien 
 
Article 105.- Deed of customs lien 
 
 Where the Law and these Regulations require the drawing up of a customs lien, the deed shall 
contain the following information:   (a) Surname and first names, identity documen t and residential address of the beneficiary 
in the case of a natural person, or the trading name, name, legal identity document 
and domicile in the case of a legal person;  this person shall be the debtor for all 
purposes; 
  (b) amount in colons of the tax payable, whic h shall at least be equal to the total amount 
of tax paid.  For this purpose, the person making the declaration shall determine the 
amount of the customs tax; 
  (c) the fact that the lien is given as a first-rank lien, showing the name of the Customs 
Control Office in favour of which the lien is given; 
 
 (d) customs transaction for which the customs lien levy is imposed; 
  (e) description, weight, customs value, and exact quantity of the goods given as 
guarantee; 
 
 (f) location where the goods are to be held; 
  (g) expiry date of the lien or extension;   (h) after the period during which the goods  may remain in the country has expired 
without the goods having been returned to th e beneficiary's installations, or if it is 
shown that the enterprise has used them or disposed of them otherwise than as 
authorized, the Customs Control Office sha ll initiate the procedure laid down in 
Articles 106 and 107 of these Regulations for collection of the taxes, fines, interest and other surcharges of any kind arising from th eir importation.  It shall also be stated 
that, at the conclusion of that procedure, a nd after the period of five working days set 
down in Article 61 of the General Customs Law, if voluntary payment of the taxes 
has not been made, the Customs Control O ffice shall proceed to sell the goods by 
public auction, in accordance with th e provisions set down to this end; 
  (i) place and date of issue of the deed;  
 (j) signature of the beneficiary or its le gal representative, duly authenticated by an 
attorney-at-law, or failing that, signed by two eyewitnesses to the execution of the deed. 
  The deed shall be recorded in writing, on pre-numbered forms duly authorized by the 
Directorate.  The deed shall also be free of any deletions, smudges or interlinear additions, and written 
in letters, without numbers or abbreviations, excep t where these form part of a mark or emblem. 
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   Any error or omission shall be rectified by means of a separate note.  Text on the reverse of 
the document as an addition shall also be validated  with the signature of the beneficiary, in 
accordance with subparagraph (j) of this Article.  
 If it is required to extend the customs lien, this shall be done using the amount initially 
determined or the corresponding depreciation percen tages may be applied in accordance with the list 
of depreciation methods and percentages contained in the implementing Regulations for the Income 
Tax Law, subject to the lodgement with the Cust oms Control Office of a certificate issued by a 
certified public accountant for this purpose. 
 
Article 106.- Procedure for collection of the debt 
 
 In any of the situations referred to in these Regulations, the Customs Control Office shall act 
to collect the debt, following the procedure set dow n in Article 196 of the General Customs Law. 
 
 After the final order requiring payment of the de bt has been issued, the beneficiary shall have 
a period of five working days, in accordance with Ar ticle 61 of the General Customs Law, as from the 
relevant notification, to settle its debt with the revenue authorities. 
 
Article 107.- Enforcement of deeds of customs lien 
 
 On the expiry of the period of five working days laid down in the preceding Article, if the beneficiary has not settled the debt, the Customs authority shall act immediately to enforce the 
customs lien by auctioning the goods given under lien, with the base price for the sale being the 
amount of the debt plus interest, fines and other charges applicable. 
 
 The procedure for carrying out the auction shall be that laid down by the General Customs Law and its implementing Regulations.  
Article 108.- Preventive measures 
  In any of the situations referred to in Artic le 105 of these Regulations, and prior to initiation 
of the procedure referred to in Article 106 ther eof, the Customs Control Office may, as a preventive 
measure, detain or seize the merchandise, and move it  to premises under customs control, or carry out 
any other reasonable measure to ensure its safekeeping and custody.  
CHAPTER XVIII 
Provision on goods, wastage, by-products and scrap 
 
Article 109.- Wastage, by-products and scrap 
 
 In accordance with the provisions of Article 16 of Law No. 7210 and amendments thereto, 
any beneficiaries deciding to dispose of wastage, by -products or scrap shall notify the municipality for 
the location where they are based to that effect, in writing.  The municipality shall come to collect the 
wastage, by-products or scrap within a period of th ree days from such notification, and shall draw up 
a report, to be signed by the official at the customs post.  
 If the municipality fails to appear within the above deadline, or if it indicates that it is not 
interested in taking possession of these items, the beneficiary may donate them, destroy them or import them, subject to payment of tax in accord ance with the provisions of this Chapter. 
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   Municipalities may conclude agreements with beneficiaries for the purpose of authorizing 
them to deliver directly to a third party, designate d by the municipality and expressly specified in the 
agreement, the wastage, by-product s or scrap whose disposal has been  decided by the beneficiaries.  
The said authorization may be granted for renewable periods of six months maximum and, if it is 
issued, the aforementioned report shall not be required. 
  After the parties have signed the agreement, th e Regime beneficiary enterprise shall not be 
required to notify the municipality every time it decid es to dispose of wastage, by-products or scrap.  
In such cases, it shall deliver them directly to w hoever has been designated in the agreement, on the 
terms and conditions set out therein, and a report sh all be drawn up and signed by a representative of 
the duty-free zone enterprise and the third party receiving the donation.  
Article 110.- Containers, packaging and wrapping 
  At any time, Regime beneficiaries may freely dispose of containers, packaging and wrapping 
used in transporting raw materials, merchandi se, machinery and equipment purchased under the 
Regime, whether by re-exporting, destroying, donati ng, recycling or importing them, in which case 
they shall comply with the applicab le legal and regulatory provisions. 
  For this purpose, the beneficiary shall record the said operations in its books so that the 
Customs authority may at any time verify the fina lity of such containers, packaging and wrapping. 
 
Article 111.- Destruction of wastage, by-products or scrap 
 
 Whenever it is necessary to destroy wastage, by -products or scrap forming part of or arising 
from the production process of the beneficiary, the la tter shall submit an application to the competent 
Customs Control Office.   In the case of non-perishable merchandise, the Customs shall have a period of three working 
days as from such notification to authorize and conduct the destruction operation, in the case of non-perishable merchandise.  The said period shall be one working day in the case of wastage, 
by-products or scrap of perishable merchandise.  The destruction operation shall be recorded in a 
report, to be signed by the Customs official and a representative of the beneficiary.   On the expiry of the above-mentioned time-l imits, if no decision h as been taken or the 
Customs official has not put in an appearance, the beneficiary may proceed with the destruction in the 
presence of a witness and shall prepare the correspondi ng report, a copy of which shall be forwarded 
to the Customs Control Office, within 24 hours of the destruction of the merchandise.  The foregoing 
shall be without prejudice to any disciplinary liability that might attach to officials guilty of such an 
omission.   If electronic means allow the possibility, the Re gime beneficiary shall transmit the destruction 
application to the Customs Control Office electronical ly, together with the information concerning the 
goods it intends to destroy.  
Article 112.- Donations 
  In addition to the provisions of the preceding Article, the beneficiaries, working through the 
Joint Social Assistance Ins titute (IMAS), may donate raw materials, finished products, 
semi-manufactured goods, scrap or capital goods to  charitable institutions, educational centres or 
State institutions, under the proce dure laid down in these provisions. 
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  Article 113.- Procedure for donations 
 
 When a donation is made, the Customs Control Office shall verify that the donation is being made to charitable institutions, educational centres or  State institutions on the basis of the list issued 
half-yearly by IMAS, which list may be modified with prior authorization from the Institute. 
  The Customs Control Office shall draw up a report indicating that the donation has been made and shall forward one copy to the beneficiary of the donation, another to the Customs Control Office 
and to the donor, with the original being held by the Office.  This report shall constitute a Duty-Free 
Zone Customs Declaration, and shall be used for the movement of the materials and goods so 
donated.   If electronic means allow the possibility, the Re gime beneficiary shall transmit the donation 
application to the Customs Control Office electr onically, together with information concerning the 
goods it intends to donate, and in all cases shall comply with the procedures laid down by the 
Directorate-General.  
Article 114.- Waste of goods subject to special regulations 
 
 In the case of goods inward-cleared under th e Regime which require special processes for 
their destruction, for turning them  into waste or recycling them b ecause of environmental risks, the 
beneficiary shall employ a technically capable firm fo r this operation, if it is unable to do it itself or if 
the municipality does not have the proper resour ces or methods to dispose of the materials 
satisfactorily.  
 Notification to the Customs authority and its pa rticipation shall comply with the regulations 
laid down in Article 111.  
CHAPTER XIX 
Abandonment 
 
Article 115.- Cases of abandonment 
 
 Materials and merchandise inward-cleared in to duty-free zones and those which have not 
been placed under any customs Regime and whose cons ignee is a Regime beneficiary, shall be subject 
to abandonment to the revenue aut horities in the following situations: 
 
 (a) Where the owner has expressly relinquish ed them, by written notification sent to 
PROCOMER and the Customs Control Office; 
  (b) where the condition laid down in Article 56(a) of the General Customs Law is met.  
In these circumstances, if the merchandise is recovered, up to 24 hours before the day 
set for the auction, by the consignee and the latter has the status of Regime 
beneficiary, the said merchandise may be placed under the Regime with the enjoyment of all its advantages; 
  (c) where the condition laid down in Article  56(f) of the General Customs Law is met. 
 
 In such cases, the Customs Control Office shall proceed in accordance with the relevant 
legislation, and shall notify COMEX accordingly.  In the case of an auction sale, the procedure 
followed shall be that laid down in Articles 73 et seq  of the General Customs Law and 
Articles 188  et seq.  of its implementing Regulations. G/SCM/N/186/CRI 
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CHAPTER XX 
Mergers 
 
Article 116.- Applications for mergers 
 
 Regime beneficiary enterprises wishing to merg e shall notify PROCOMER to that effect prior 
to carrying out the merger, specifying the numbers of  employment positions and levels of investment 
they intend to maintain.  If it is decided that as a consequence of the merger the resulting enterprise 
complies with the conditions laid down in Article 20 bis of Law No. 7210 and amendments thereto for 
the purposes of qualifying for the time-bound tax c oncessions, the term in the resolution granting 
Regime status to the enterprise admitted most rece ntly to the Regime shall continue to apply;  
otherwise, the term applied shall be that of the enterprise of longest standing in the Regime. 
 Article 117.- Effects of mergers without prior notification 
 
 If two or more Regime beneficiary enterp rises merge without completing the procedure 
referred to in the preceding Article, the new en terprise or dominant enterprise shall fulfil the 
requirements in terms of number of employment positions and investment levels for all of the 
beneficiaries.  The resolution granting Regime stat us which authorizes the merger shall specify the 
sum totals of the said numbers of employment pos itions and investment amounts.  The calculation of 
the term for the Regime incentives shall be based on the term specified in the resolution granting 
Regime status to the longest standing enterprise in the regime.  
Article 118.- Documents substantiating the merger 
 
 In any of the situations referred to in the two preceding Articles, the enterprise in question 
shall provide PROCOMER with the following docu ments within a maximum deadline of one month 
from entry of the enterprise  in the Public Register: 
  (a) Notarial certificate of registration of the merger in the Public Register; 
 
 (b) certified copy of the registered deed recording the merger agreement;   (c) copy of the notice published in the official journal, La Gaceta ; 
 
 (d) application for modification of the resolution granting Regime status, duly signed by 
the legal representative of the enterprise.  If the enterprise has several plants, the 
application shall specify which is to be the principal plant. 
 
CHAPTER XXI 
Provisions on credit incentives 
 
Article 119.- Credit incentives on wages and salaries 
 
 Those beneficiaries which, after complying with  the relevant requirements laid down in Law 
No. 7210 and amendments thereto and these Regulati ons, then set up in duty-free zones located in 
"relatively less-developed" zones according to the classification system laid down by the Executive in 
accordance with the aforementioned La w, shall be entitled to receive a credit for five years, for the 
amount paid as wages and salaries during the calendar year immediately preceding the date of application for this benefit, after deduction of th e amount paid to the Cost a Rican Social Security 
Fund on those wages and salaries, in accordance with  the certification of the relevant payroll figures  G/SCM/N/186/CRI 
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  reported to the Fund.  For the first year, the credit shall be equal to ten per cent (10 per cent), and it 
shall decrease by two percentage points through to  its termination in the last year.  Enterprises 
wishing to claim this benefit shall submit their app lication within five years from 8 October 1998.  To 
this end, they shall submit the relevant applicati on to PROCOMER within one month of the end of the 
calendar year, accompanied by the following documents: 
  (a) Certificate issued by the Costa Rican So cial Security Fund, showing the amount paid 
by the enterprise as wages and salaries in  the immediately preceding calendar year, 
and the total amount paid to the Fund on those wages and salaries; 
 
 (b) certified copy of each of the monthly payrolls for the same period referred to in 
subparagraph (a) above, which wh en added together must be fully consistent with the 
total figures shown in the certificate referred to in the said subparagraph; 
 
 (c) confirmation that the enterprise is located in a relatively less-developed zone, 
according to the classification system laid  down in regulations issued by the 
Executive. 
  Beneficiaries which have received this incen tive in previous financial years shall make 
express mention of this in their application for the purpose of applying the percentage reduction laid 
down in Law No. 7210 and amendments thereto, accompanied by documentation confirming the 
approval for the immediately preceding financial year.   The credit pursuant to this Chapter shall not ap ply to Regime beneficiaries based in relatively 
less-developed zones if the project they are carryin g out already existed or was already in operation 
before the enterprise was granted Regime status, exce pt where it can be demonstrated that the venture 
is a new project, or in exceptional cases, where ju stified by the nature of the project and the 
magnitude of the additional investments, as recommended by PROCOMER.   If the applicant is an enterprise which is based in a duty-free zone park but which has 
obtained authorization to operate a satellite plant located in a relatively less-developed zone, the 
benefits under this Article shall be granted solely for the wages and salaries paid by the enterprise to 
staff working exclusively in the satellite plant in  question, as verified by PROCOMER, which may 
require a sworn statement to this effect.  
Article 120.- Examination and amount of the credit 
 
 PROCOMER shall verify compliance with th e above requirements, determine whether the 
credit is to be granted, and for what amount, and forward a report to COMEX.  
Article 121.- Payment of the credit 
  The credit referred to in this Chapter shall be paid by the Ministry of Finance, through the 
National Treasury, on presentation of the Governme nt invoice, by means of the normal mechanisms 
in place.  G/SCM/N/186/CRI 
G/SCM/N/192/CRI Page 66 
 
 
  CHAPTER XXII 
Other provisions 
 
Article 122.- Competence of PROCOMER 
 
 PROCOMER shall receive, assess and process applic ations from parties interested in joining 
the Regime, and monitor the investment amounts and other criteria laid down in the resolution 
granting Regime status.  
 PROCOMER shall also receive and assess the annual reports to be submitted by beneficiary 
enterprises and act in the matters expressly designate d in these Regulations as falling within its area of 
competence.   COMEX shall initiate and conclude any appr opriate penalty procedures, in each case on the 
basis of technical reports and recommendations from PROCOMER and from the competent agencies 
of the Ministry of Finance.  In cases of suspension of benefits, revocation or relinquishment of the Regime, COMEX shall forward the corresponding reso lution to the management enterprise of the 
park where the beneficiary enterprise is installed so that it may exercise the appropriate controls. 
  All matters relating to the monitoring and aud iting of customs operations and tax exemptions 
are within the area of competence of the relevant  agencies of the Ministry of Finance, and where 
applicable of PROCOMER, where its involvement is provided for in Law No. 7210 and amendments 
thereto, or in these Regulations.   If in the course of exercising its powers PROCOMER detects the possible presence of tax 
irregularities, it shall immediately notify the Ministry  of Finance accordingly for the appropriate legal 
action.  Similarly, the competent agencies of the Ministry of Finance shall notify PROCOMER of any 
irregularity they detect which may provide the basi s for the initiation of a penalty procedure pursuant 
to Article 32 of Law No. 7210 and amendments thereto.   On the basis of that information and its own 
investigations, where applicable, PROCOMER sh all forward a recommendation to COMEX for the 
initiation of the appropriate penalty procedure as soon as possible, in accordance with the said 
Article 32. 
 
Article 123.- Exemption from requirements on  the receipt and clearance of merchandise 
 
 In accordance with the provisions of Article 4 of the Duty-Free Zone Law Amendment Law, 
Law No. 7830 of 22 September 1998, the Directorate is hereby authorized, acting by resolution and 
with due regard for the special  circumstances of service supply enterprises and of enterprises 
managing parks intended for use by service supply ente rprises covered by the Regime, to exempt such 
enterprises, in full or in part, according to the circumstances in each case, from the requirements 
relating to the receipt and clearance of merchandi se in their capacity as Cust oms Service Auxiliaries, 
contained in the Regulations implementing the Ge neral Customs Law and other related provisions.  
The above is without prejudice to any other altern ative monitoring measures laid down that are 
appropriate in terms of the nature and activity of such service supply enterprises. 
 
Article 124.- Area available for parking vehicles 
  Park management enterprises which have an area available for parking vehicles may lease 
these areas to Regime beneficiary enterprises located within or outside the park, provided that they 
comply with the regulations on the c ontrol, entry and exit of vehicles. 
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  Article 125.- Facilities for carrying out auditing supervisory functions 
 
 PROCOMER shall ensure that the Directorate is provided with the facilities required for the 
satisfactory performance of its auditing supervisory functions. 
 
Article 126.- Notification of penalties 
 
 The Directorate shall notify the Ministry of  Foreign Trade and PROCOMER of any final 
penalties it imposes on enterprises covered by the Regime. 
 
CHAPTER XXIII 
Final provisions 
 
Article 127.- Repeal 
 
 The Regulations implementing the Du ty-Free Zone Law, Executive Decree 
No. 29606-H-COMEX of 18 June 2001, published in the official journal, La Gaceta , No. 121 of 
25 June 2001 and amendments thereto are hereby repealed. 
 
TRANSITIONAL PROVISIONS 
 
Transitional clause I.- 
 
 For enterprises which joined the Regime and a pplied for authorization to make sales into the 
national customs territory before 8 October 1998, the requirement regarding the percentage of sales 
into the national customs territory shall be th e percentage applicable prior to that date. 
 
Transitional clause II.- 
 
 The Ministry of Finance shall notify public-sector and private-sector providers of public services that they are not required to apply the general memorandum regarding the exemption from 
general sales tax, in accordance with the provisions  of Article 9 of the Law regulating that tax and 
Article 23 of Law No. 7210 and amendments thereto.  
Transitional clause III.- 
  The Foreign Trade Promotion Agency of Costa Rica and the Ministry of Finance shall have a 
compliance deadline of one year as of the publica tion of this Executive Decree to conclude the 
inter-institutional agreements needed for complia nce with Articles 8 and 9 of Law No. 8220 of 
4 March 2002, the Law on Protecting Citizens fro m Excessive Administrative Requirements and 
Formalities and its implementing Regulations;  and Executive Decree No. 32565-MEIC of 
28 April 2005, with the following institutions:  Costa Rican Social Security Fund and the National 
Registry, so as to ensure that these institutions provide the information required by Article 10, 
part IV(a) and (e)(ii).  Until such agreements are si gned, the party subject to the measure shall provide 
the information.  
Article 128.- Validity 
 
 These provisions shall take effect as from the date of their publication in the official journal, La Gaceta . 
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  Given at San Marcos de Tarrazú on the twenty-n inth day of the month of August in the year 
two thousand and eight.   
ÓSCAR ARIAS SÁNCHEZ 
 
 GUILLERMO ZÚÑIGA CHAVES  AMPARO PACHECO OREAMUNO 
  Minister of Finance    Minister of Foreign Trade a.i. 
 
__________